Star Xu, founder and head of the OKX crypto exchange, said that the regulation of Binance worldwide is one of the best things to happen to the crypto industry. In his view, the era of regulatory arbitrage, on which the largest global exchange built its advantage for years, is coming to an end.

The trigger was a Reuters report on June 16 that the Greek regulator HCMC may revoke Binance's license under MiCA. Without it, the world's largest crypto exchange risks losing the right to serve clients in the Eurozone from July 1, 2026. OKX itself has already obtained a MiCA license through Malta, so Xu is speaking from the position of a direct competitor.

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What is the essence of the OKX head's position

According to Xu, many people believe that tightening the regulation of Binance threatens competitors, but he holds the opposite view. For more than a decade, concentration in the crypto sector, in his opinion, was largely based on regulatory arbitrage. Companies that operated with fewer restrictions gained an advantage over those who invested in licenses, compliance and governance.

As regulators bring Binance into line with uniform standards worldwide, this advantage is gradually disappearing. Competition, Xu believes, should not be built on who operates under the fewest rules. It should be in products, technology, execution, governance and trust.

The main thesis of his message is simple: the regulation of Binance in most jurisdictions is not a threat to the industry but a positive development. Xu argues that for years the exchange's strongest competitive advantage was not technology, liquidity or products, but precisely arbitrage and control over the narrative.

Source: BeInCrypto