During the G-20 leaders meeting, a Popular crypto exchange platform and the CEO of Binance, Changpeng Zhao, asked for new and better regulation for the crypto industry.
Zhao said, we are new to the industry; we are seeing what’s happening in the past few weeks. Things go crazy in the industry. We do need some regulation; we need to do this correctly and stably.
Since cryptocurrency exchange platform founder Sam Bankman-Fried resigned, the crypto industry has been seeing considerable turmoil. Changpeng Zhao, CEO of Binance, asked for the regulations.
Binance was also in the news earlier this year for leading a $150 million funding to bail out the popular game Axie infinity.
Meanwhile, the crypto industry is trying to recover from the unexpected collapse of the world’s second crypto exchange platform -FTX. On the other hand, investors are worried about funds on the centralized exchange.
These comments came after Binance backed out from the deal with rival exchange Sam Bankman-Fried’s FTX.
As per the report, FTX and Binance saga made significant losses to cryptocurrencies, including bitcoin. For several consecutive days, bitcoin was trading low.
Zoho on Friday announced that his company no longer accepts payments and funds from FTX. The sudden downfall in the same Bankman -fried exchange ruptured the prospects of being included in mainstream portfolios.
Binance Break Rescue Deal
On Monday, FTX filed a case for bankruptcy after seeing the large pool of funds from customers, and Binance broke the rescue deal. FTX crypto token FTT also plunged approx 45 % during this saga.
Bankman-Fried and his company FTX exchange are currently under investigation by US authorities. The studies mainly point out that the exchange has used customers’ money to pay Bankman-Fried’s hedge fund.
To reduce further cascading effects of FTX, Binance is preparing a recovery fund to support FTX users.
Zoho also said that other industry players could support the project, who want to co-invest are welcome to support the project. Crypto is not going anywhere, he added.
But in a liquidity crisis, the users are worried about their funds. Many users have withdrawn their funds after the mishandled report of the roughly $400 million transactions.
Sam Bankman-Fried, FTX’s 30-year founder from being the shining face to being responsible for the industry’s worst crisis due to shabby practices.30-year-old professional set up the platform in 2019 and quickly made it one of the crypto exchange platforms. FTX’s value was $32 billion in Feb 2022 with the investors of SoftBank and BlackRock.
Meanwhile, the crypto market has considerably collapsed amid the FTX-Binance saga. The crypto market has lost approx $200 billion in the past week.
FTX collapse is also questioning the viability of crypto assets as Salman Ahmed, chief investment strategist at Fidelity International.