Speaking to CryptoSlate’s Akiba on the latest episode of SlateCast, KuCoin CEO Johnny Lyu said the FTX collapse “was a huge blow to the whole industry,” and that was it.
“All financial institutions and exchanges hope that this crisis will end as soon as possible and that everything will be back to normal again.”
Lyu reiterated that KuCoin’s reserve proof and third-party audit was released in response to growing market concerns over the stability of other exchanges.
Akiba asked about third-party providers’ views on custody of assets within Centralized Finance (CeFi) and whether KuCoin believes this is the best approach.Ryu explained that
“For the traditional financial industry, saving and trading are really separate from each other. Money is deposited in banks, but transactions are actually done on independent platforms.”
On the other hand, “cryptocurrencies are different because exchanges provide the infrastructure.”
“In the future, if there is a service provider that can provide users with highly professional asset management services, and if there is a reliable and trustworthy service provider, we would be happy to cooperate.”
Akiva went on to ask Lyu if this shift in focus to asset management would result in faster regulation when it comes to centralized exchanges.
“A sovereign state with an established financial industry will consider two things when announcing regulatory policies,” Lyu explained.
“Firstly, the safety of assets, and secondly, existing rules in certain industries ensure that the growing interests of users are maximally protected and do not suffer malicious losses. “
Lyu went on to say that KuCoin is “very proactive and supportive of its licensees,” “licensees are very proactive in complying with local laws and regulations,” and that “KuCoin works closely with regulators.” We are willing to maintain communication with
Akiva then asked about KuCoin’s current financial situation, confirming that KuCoin is fully liquid, that users’ assets are safe and can be withdrawn, and that users do not have any concerns or problems in the future. asked to confirm.
“We can confirm that we are fully liquid and we are now publicly disclosing the status of our assets.
Lyu went on to explain: [the] The traditional financial sector is … changing so fast that regulation has barely caught up. ”
“I think that every time there is a crisis, there are also a lot of opportunities. […] A boom in third-party auditors that can provide professional services such as: […] Proof of reservation, even proof of support. ”
Lyu said, “…preempting with good knowledge is always a better strategy,” and added, “Everyone, including users, should make a due contribution for the healthy development of the industry.” There is,” he concluded.