Binance CEO Changpeng Zhao (CZ) share His take on the recent FTX debacle with the Binance community says that FTX going down isn’t good for the industry as it welcomes tighter regulation around the world.
“Don’t look at it as ‘our win’. User confidence is greatly shaken. Regulators will scrutinize exchanges further. It will become even more difficult to obtain a license worldwide,” CZ said in a statement.
In response to tougher regulations, the CEO said Binance will “significantly” improve transparency, proof of reserves, insurance funds, and more.
Statement from CZ issued after Binance announced The FTX acquisition led to a huge speculation that pushed the price of BNB up, but then sent the whole market down amidst the overall bearish sentiment.Previously, Binance decided By selling all FTT reserves, a huge Asset withdrawal From a cryptocurrency exchange based in the Bahamas.
However, the Binance CEO admitted that the subsequent FTX acquisition announcement was not pre-planned, revealing that he was unaware of the internal state of FTX.
“It was 24 hours ago that I got a call from SBF. We can guess, but it’s not very accurate,” Zhao said.
Meanwhile, the CEO has hinted that he may walk away from the deal. However, while due diligence on the transaction is still ongoing, Zhao revealed that his exchange, Binance, has ordered him to stop selling FTT, and urged others not to buy or sell FTT tokens. warned people.
Previously, Zhao warned the actor against going into debt to run a cryptocurrency business. The CEO believes FTX’s troubles provide lessons for other industry players.
Two big lessons:
1: Do not use the created token as collateral.
2: Do not rent if you run a crypto business. Don’t use capital “efficiently”. have a lot of reserves.
Binance has never used BNB as collateral and has never borrowed.
— CZ🔶 Binance (@cz_binance) November 8, 2022
Also on another twitter Positionhe called In order to increase the transparency of user funds, all cryptocurrency exchanges carry out proof of reserves.