Binance chief Zhao signals joint push by crypto giants with regulators

Binance chief Changpeng Zhao plans to unite the industry7s biggest players to work with policymakers and regulators. He announced this during an AMA session on Twitter Spaces.

Thanks to the 40,000+ people for listening in. Will try to do this a bit more often given the demand. https://t.co/OkCFNhLv4Y

— CZ 🔶 Binance (@cz_binance) November 14, 2022

“The association will provide liaison with regulatory authorities, and support leading industry practices, including ensuring transparency and reserves verification,” he said.

Zhao noted that Binance would not run the organisation. It will be run by a “third party that has previously carried out such work in different spheres.”

He said that several regulators had urged the creation of such an association.

“We will strive to serve as a communications hub for policy discussion, the ideational space, commenting on the pros and cons of certain practices,” Zhao said.

Earlier, Binance announced the launch of a “recovery fund”, intended to support the company affected by FTX’s collapse to avert a cascading effect. Zhao said the entity already has 4-5 potential sponsors.

He acknowledged the role he has played in the current crisis facing the industry, but stressed that he is optimistic about the outlook.

“No matter how much I am accused of exposing, puncturing a bubble, or something of that sort […], I apologise for any panic I caused. But if a problem exists, the sooner we identify it, the better,” Zhao said with confidence.

FTX’s FTT token crash, which exposed the platform’s liquidity crisis, occurred after the Binance chief’s statement about exiting positions in the asset.

Zhao’s company ignored Alameda Research’s offer to buy the FTT. Binance also declined a proposed takeover of the beleaguered platform.     

“We will endeavour to strike a balance between exposing illegal practices that spark panic and price falls, and building a healthy industry by removing unscrupulous players,” Zhao promised.

In November, the parent company of FTX, Alameda Research, and about 130 affiliated firms filed for bankruptcy.

U.S. Treasury Secretary Janet Yellen said the incident underscored the need for thorough regulation of the industry.

Representative Brad Sherman accused cryptocurrency billionaires of hampering the adoption of rules for the industry through lobbying.

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