Changpeng Zhao outlines the six core requirements for centralized exchanges

Binance chief Changpeng Zhao назвал six key requirements for centralized exchanges, in his view.

The list includes the following:

• not put user funds at risk;
• never use native tokens as collateral;
• disclose information about assets;
• maintain substantial reserves;
• avoid excessive leverage;
• strengthen and implement security protocols.

According to Zhao, adherence to the above principles is necessary for every exchange to earn trust, especially against the backdrop of the the FTX collapse.

“We cannot allow a few bad actors to tarnish the industry’s reputation while it is still in its early days,” the Binance chief wrote. “Our role, above all, is to protect users.”

Earlier, Changpeng Zhao stated plans to unite the largest players in the crypto industry to work with policymakers and regulators.

On November 14, Binance announced the launch of a fund intended to reduce the cascading negative impact of the FTX collapse on the industry.

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