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Do I need to protect his feelings if we're not dating?

A while back, I met a guy who wanted a casual relationship. I told him I didn't like the idea and he said he was not at all looking for a serious relationship but we were both fine with just hanging out. Since then we have been meeting each other every week for 5 months and had a perfectly lovely time- I've never been physical with him because that leads to complications.
Anyhow, yesterday he told me that he feels insecure about my best friend (who's a guy) and said that in his last two relationships, the girls cheated on him. He then hinted that he wasn't comfortable with me seeing my best friend.
While it's nice that he opened up to me, I wasn't cool with his demand. He has never said explicitly that we're in a relationship, but he does keep dropping hints that he's not in it for the long run - whether it's leaving the country or just saying 'some day this will end, but still like me when i leave'.
So I think it's fine for me to be friends with and go on dates with anyone I want. (and I'm not sure I'd give up my best friend even if an SO asked me).
Another friend though said that my response was cold and I should protect his feelings and not see other men. It's got me confused about whether I should gently tell him that I don't want to add some kind of casual-but-exclusive angle to our friendship. I'm currently enjoying my drama-free life, focusing on studies and partying with friends (including this guy). But I was clear right from the start that it was relationship or nothing, just as he was quite clear that it was casual or nothing.
I feel like I stuck to my end of the bargain by not putting any demands on him, I'm not sure if he's right to put demands on me.
Do I need to protect his feelings if we're not dating?
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