1 year ago
Binance CEO Changpeng Zhao said his steadfast backed out of the FTX woody due to the fact that it did not marque consciousness and the immense fiscal spread they would person had to cover.
Speaking astatine the Indonesia Fintech Summit connected Nov. 11, CZ said Binance already covers astir of the markets that FTX.com operates in. Apart from that, his speech has much customers than its embattled rival.
CZ stated that the FTX implosion has acceptable the manufacture backmost a fewer years considering the size of the speech to the industry.
The Binance CEO besides referenced the regulatory scrutiny FTX has drawn arsenic 1 of the reasons it dropped the deal.
Reports person revealed that US agencies were investigating FTX’s handling of lawsuit funds and lending activities.
Meanwhile, Sam Bankman-Fried took a flimsy excavation astatine Binance successful a leaked slack message, saying the CZ-led speech did not program to implicit the deal.
CryptoSlate probe revealed that FTX and Alameda Research had utilized Binance arsenic an unsuspecting intermediary successful siphoning funds from each other.
CZ predicts much regulations for crypto exchanges
Zhao predicted that regulators would grow their scrutinies into crypto exchanges pursuing FTX’s fallout.
According to CZ, regulators should displacement their absorption distant from conscionable know-your-customer (KYC) and anti-money laundering (AML) laws, but besides to however the speech operates. He said:
“(Regulators have) to absorption much connected the speech operations …business models, proof-of-reserves”
CZ added that his steadfast would besides look to amended regulators connected however to audit crypto exchanges.
“We besides privation to amended regulators each astir the satellite -how bash you bash audits connected crypto exchanges, not conscionable KYC oregon AML, which is important, but however bash you cheque acold wallets? How bash you usage equilibrium reconciliations? How bash you cheque transaction logs? How bash you usage on-chain monitoring tools to bash this?”
Crypto exchanges similar Binance, Crypto.com, KuCoin, Huobi, etc., person been forced to reveal their proof-of-reserves successful a bid to regain retail users’ trust.
The station Binance CEO expects much regulatory scrutiny pursuing FTX implosion appeared archetypal connected CryptoSlate.
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