The head of Binance has announced the joint work of cryptos with regulators

The head of Binance has announced the joint work of cryptos with regulators

CEO Binance Chanpen Zhao plans to unite the largest crypto industry players for working together with politicians and regulators. He stated this during the AMA session on Twitter Spaces.

“The association will provide communication with the regulatory authorities, as well as maintain advanced practices in the industry, including ensuring transparency and confirmation of reserves,” he said.

Zhao noted that Binance will not manage the organization. This will do “a third party that has done this more than once in different fields”.

According to him, “several regulators” asked for the creation of such an association.

“We will try to act as a communication hub to communicate about politics, ideological space, commenting on the pros and cons of certain practices,” Zhao said.

Earlier, Binance announced the launch of the Restoration Fund, designed to support the company’s affected ftx collapse in order to avoid a “stunt effect”. Zhao said that the structure already has 4-5 potential sponsors.

He recognized the role that he played in the current crisis of the industry, but emphasized that it was optimistic about the prospects.

“No matter how they blamed me that I exposed, pierced the bubble or something like that […], I apologize for any panic that I caused. But if the problem exists, the sooner we identify it, the better, ”Zhao expressed confidence.

FTX FTX FTT Token collapse, followed by a liquidity crisis on the platform, occurred after the statement of the head of Binance about the exit from the positions in the asset.

Zhao’s company ignored the proposal of Alameda Research to redeem it FTT. Binance also abandoned the alleged absorption of the platform crisis.

“We will try to achieve a good balance between the disclosure of illegal practices that cause panic with a drop in prices and the creation of a healthy industry with the elimination of unscrupulous players,” Zhao promised Zhao.

Recall, on November 11, the maternal company FTX, Alameda Research and about 130 more affiliated firms have submitted bankruptcy proceedings.

US Minister of Finance Janet Yellen expressed the opinion that the incident with the exchange showed the need for careful regulation of the industry.

Member of the House of Representatives of Brad Sherman accused cryptocurrency billionaires of holding up the adoption of the rules for the industry through lobbying.

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