Star Xu argued that broader Binance regulation could reduce regulatory arbitrage across the crypto industry. He said exchanges may increasingly compete on products, governance, compliance, an
There has been a new talk after a Reuters report suggested Greece’s Hellenic Capital Market Commission may reject Binance’s MiCA license application. Responding to the report, OKX founder and CEO Star Xu said stricter oversight of Binance could reduce regulatory arbitrage and shift industry competition toward products, governance, compliance, and user trust rather than regulatory advantages.
Addressing the broader implications, Star Xu said Binance becoming regulated across more jurisdictions would benefit the crypto industry. According to Xu, competition has often favored companies operating under lighter regulatory requirements.
He argued that consistent global oversight could reduce those advantages. As a result, exchanges would compete more on technology, execution, governance, and customer service.
Xu also discussed Binance’s growth over the past decade. He said the exchange built a powerful ecosystem through liquidity, asset listings, social media reach, and market narratives.
According to Xu, Binance created a large network that includes founders, venture funds, incubated projects, and ecosystem partners. He noted that some projects succeeded, while many others later recorded steep price declines.
Beyond market structure, Xu focused heavily on compliance issues. He referenced past allegations and media reports concerning sanctions exposure, market surveillance, and anti-money laundering controls.
According to Xu, regulators increasingly assess whether compliance programs actively reduce risk rather than simply satisfy procedural requirements. He argued that the effectiveness of controls matters more than staffing levels.
Xu also cited reports involving Binance’s historical operations, including Russia-related questions surrounding CommEX. He further referenced public discussions regarding Binance founder Changpeng Zhao, commonly known as CZ, and projects connected to the broader Binance ecosystem.
While noting that regulators and courts determine the validity of allegations, Xu said questions remain regarding compliance culture and risk management practices.
The discussion comes as Binance continues pursuing authorization under Europe’s Markets in Crypto-Assets framework. According to Binance, the company remains committed to securing a MiCA license and operating under a harmonized European regulatory structure.
Xu said the ongoing regulatory process highlights a broader industry transition. According to his remarks, regulators increasingly focus on governance standards, operational controls, and long-term accountability as crypto firms expand across global markets.
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