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Paul has intensified his heated rivalry with Fury in recent months amid speculation the pair could collide in the squared circle in the future.
The YouTuber-turned-boxer recently targeted the former Love Island star in a savage rant as he fired a cheeky swipe at Fury's partner, Molly-Mae Hague.
Bisping, who previously accepted a challenge to fight Paul, admitted that he is not the YouTube star's biggest fan.
However, the 42-year-old ex-MMA star brushed aside his rivalry with Paul and admitted that he respects his dedication to combat sports.
"I will say this, I'm not a Jake Paul fan and I don't know the guy, but fair play to him," Bisping told talkSPORT.
"He was a YouTuber, and has hundreds of millions of followers and making tons of money, and you can't hate on him for that. Good for him. We all want to do that.
"He's obviously developed a passion for combat sports and he's parlayed that following on YouTube over to the boxing world."
Bisping continued by saying that fans can't "hate on what Jake Paul is doing" after pointing towards the YouTuber's first-round TKO win over Askren last month.
The UFC Hall of Famer explained: "Okay, he fought Nate Robinson who was a basketball player, and knocked him out.
"Then he fought Ben Askren, who was an MMA champion in some organisations, but couldn't fight his way out of a wet paper bag with his fists.
"He was still a former champion and went out and knocked him out. You can't hate on what Jake Paul is doing, I know it's a popular thing to do."
Fury, who called out Paul for a fight in a video message with brother Tyson, holds a 5-0 boxing record after his pro debut in 2018.
However, the 22-year-old British boxer's resume has been heavily criticised by fans over his opponents' boxing records inside the squared circle.
Fury is slated to return to action on 5th June against British unknown Andy Bishop, who has lost all 14 of his professional fights.
Bisping insisted that Paul has fought better opponents than Fury, despite saying that the latter is "doing it the way you should in boxing."
The former UFC middleweight champ said: "MMA is a faster rise in terms of competition, but in boxing you chip away against terrible opposition.
"He's fighting better opponents than some people do. Tommy Fury, I saw his next opponent has lost 14 fights in a row.
"I think Jake Paul is fighting better people than him. No offence to Tommy Fury, he's doing it the way you should in boxing.
"You step up slowly and surely, that's not an insult to him, far from it. You can't hate on Jake Paul."
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