1. PixelPlaygroundHome
  2. Blockchain Briefs

Breaking Down Zhao Changpeng’s Tweet: Rethinking the Idea of ‘Onshore’ and ‘Offshore’

• Blockchain Briefs • 141 views

On February 20, Zhao Changpeng, founder of Coin An, tweeted: \”The term \’offshore\’ appears too narrow, self-centered, and takes the overall situation into consi…

Breaking Down Zhao Changpengs Tweet: Rethinking the Idea of Onshore and Offshore

On February 20, Zhao Changpeng, founder of Coin An, tweeted: “The term ‘offshore’ appears too narrow, self-centered, and takes the overall situation into consideration, which is not conducive to the development of our industry. From the perspective of ‘onshore’, FTX.US is a ‘onshore’ exchange (starting from the United States) 。 The chief executives of SBF and FTX are Americans. They spent a lot of time and energy lobbying in the United States. This did not prevent fraud. The distinction between “onshore” and other people is self-centered and a bit arrogant.

Zhao Changpeng: Blockchain has no national boundaries and does not use the “offshore” and “onshore” thinking to discuss issues

Interpretation of the news:


Zhao Changpeng, the founder of Coin An, recently tweeted his opinion on the concept of ‘onshore’ and ‘offshore,’ stating that the former is a more conducive approach to industry development. While many in the cryptocurrency world have long embraced the concept of ‘offshore,’ with some even building exchanges in remote locations, Zhao argues that this approach can be narrow-minded and self-centered. Instead, he suggests that a more inclusive perspective that considers the overall situation from an onshore approach is necessary.

Zhao’s tweet comes at a time when many in the industry are grappling with regulatory scrutiny and trying to navigate fragmented legislation around the world. In the US, cryptocurrency exchanges must register with the Commodity Futures Trading Commission (CFTC) and adhere to strict anti-money laundering (AML) and know-your-customer (KYC) requirements. The high costs of compliance and lobbying efforts necessary to operate legally in the US often push companies to set up offshore, outside the purview of regulators.

However, Zhao believes this approach can be detrimental to the industry’s development, arguing that it is essential to work within the regulatory framework and be transparent about operations. He notes that FTX.US, an exchange founded by Sam Bankman-Fried and Gary Wang, is an “onshore” exchange starting from the US. Zhao acknowledges that the FTX team, which is primarily made up of Americans, has spent a lot of time and energy lobbying in the US. However, this did not prevent fraud, implying that even a robust regulatory framework can’t be entirely successful, but it’s better to work with it than circumvent it.

Zhao’s critique of the crypto industry’s offshore approach is not without merit. The lack of regulatory oversight has led to the proliferation of scams and fraudulent activities. However, it’s vital to understand that regulatory pressures can stifle innovation and limit access for many people around the world. Moving forward, the industry must find a balance between working with the regulatory frameworks in place and ensuring that it remains accessible to all.

In summary, Zhao Changpeng’s tweet urges the industry to rethink the concept of ‘onshore’ and ‘offshore.’ While building exchanges offshore may provide certain benefits, it can be narrow-minded and self-centered. Instead, a more inclusive perspective that considers the overall situation is necessary for industry development. The tweet highlights the importance of transparency and working with the regulatory framework in place, but it’s also essential to ensure that the industry remains accessible to all.

Overall, the keywords that can best capture the tweet’s essence are: Zhao Changpeng, Coin An, regulatory framework, FTX.US, accessibility, and offshore.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/1777/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 02/20/2023 08:06
Next 02/20/2023 08:17

Recommended articles