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Changpeng Zhao Explains Binance’s Responsible Trading Program -Breaking


© Reuters. Changpeng Zhao Explains Binance’s Responsible Trading Program
  • Changpeng Zhao from Binance shared his views about leveraged products during a conversation with CNBC.
  • Binance may be the only one that provides a responsible trading platform.
  • Many consider leveraged products to be an effective and useful financial tool.

Changpeng Zhao (CEO of Binance) shared his views on leveraged products in a CNBC interview, June 9.

Binance was asked about his views on the effects of using leverage products to help people not know how they work.

Zhao said that Binance ensures that leveraged products are only offered in areas where legal. Binance may be the only exchange that offers a responsible trading system, Zhao stated.

The program asks specific questions about an individual and, if they don’t answer the correct questions, it will ban them from trading leveraged products. A trading program will also prevent a person from trading for certain amounts of time if they lose money on leveraged products.

Zhao was then asked whether he thought it better to drop leveraged products because people are likely to lose money and it might lead to greater stability. He then said that he didn’t think this was necessary.

Zhao said that there are leveraged products not only in crypto, but also traditional markets. Zhao stated that many leveraged tools are used to help with financial planning, such as price discovery and liquidity.

He was asked whether the current bear market would continue for long. However, he said that he didn’t have any idea. Although he mentioned that such cycles occur every four years, it does not necessarily mean they will happen again in the future.

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