Biggest Crypto exchange Binance calls for regulations
The CEO of the world’s largest cryptocurrency exchange has told world leaders that new regulations are required. Binance CEO Changpeng Zhao has also announced plans to launch a recovery fund to help struggling crypto businesses.
It comes in the wake of the FTX exchange’s bankruptcy, which shook the industry and wiped billions off the crypto market.
Binance CEO Changpeng Zhao was speaking at a conference in Bali, Indonesia, attended by G20 leaders.
“We’re in a new industry, and we’ve seen things go crazy in the industry in the last week,” Mr. Zhao, also known as CZ, according to Reuters news agency.
“We need some regulations, we need to do it properly, and we need to do it stably.”
However, Mr. Zhao stated that crypto companies had responsibilities as well.
“The industry as a whole has a responsibility to protect consumers and everyone else. So it isn’t just the regulators “He stated.
In many countries, crypto assets are lightly regulated in comparison to other financial sectors, with few consumer protections.
The UK government has previously announced plans to regulate stablecoins, which are designed to have a stable value linked to traditional currencies or assets such as gold.
The recovery fund will assist in “reducing further cascading negative effects of FTX,” Zhao said in a tweet on Monday, focusing on projects.
To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify. 1/2— CZ 🔶 Binance (@cz_binance) November 14, 2022
Binance’s announcement that it would sell its holdings of FTX’s cryptocurrency, FTT, and its subsequent withdrawal from a rescue deal for the crisis-struck exchange- were factors in FTX’s collapse, which wiped an estimated $200 billion (£170 billion) from the crypto market in a matter of 8 days
It is now feared that other crypto businesses may be adversely affected as investors withdraw funds.
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