Binance Chief Pushes for Global Crypto Standards Amid FTX Crisis

[FMCPAY_GLOBAL]

Binance's CEO said that industry players and regulators need to come together to bring transparency in the crypto space.

As the FTX crisis unravelled over the last week, the demand for regulatory clarity and proper crypto framework has soared recently. Head of crypto exchange Binance – Changpeng “CZ” Zhao – said that the firm has spearheaded efforts with other industry players in establishing a global standard for digital assets.

Zhao has recently engaged in a public feud with FTX chief Sam Bankman-Fried triggering the chain of events that led to the collapse of the crypto exchange FTX. The collapse of giants like FTX has completely shaken the crypto industry. It also eroded more than $200 billion from the crypto market in a week’s time. Speaking at a conference in Bali, Zhao said:

“As an industry, we need to increase transparency. We need to work very closely with regulators all around the world to make this industry more robust. There is a strong role for regulators to play but we can’t blame this on any single party”.

The Binance chief also mentioned that Indonesia’s tax regime isn’t optimal and that licenses should be available more easily. He further argued that the “industry is still growing, we are still building”.

The FTX collapse has caught the attention of U.S. lawmakers. Senator Elizabeth Warren said that the FTX fall uncovers fragility in the crypto space. However, Coinbase chief Brian Armstrong slammed the SEC adding that the lack of regulatory clarity is causing more pain.

(Source: Coingape)

[Sayeds56]

Binance's CEO said that industry players and regulators need to come together to bring transparency in the crypto space.

As the FTX crisis unravelled over the last week, the demand for regulatory clarity and proper crypto framework has soared recently. Head of crypto exchange Binance – Changpeng “CZ” Zhao – said that the firm has spearheaded efforts with other industry players in establishing a global standard for digital assets.

Zhao has recently engaged in a public feud with FTX chief Sam Bankman-Fried triggering the chain of events that led to the collapse of the crypto exchange FTX. The collapse of giants like FTX has completely shaken the crypto industry. It also eroded more than $200 billion from the crypto market in a week’s time. Speaking at a conference in Bali, Zhao said:

“As an industry, we need to increase transparency. We need to work very closely with regulators all around the world to make this industry more robust. There is a strong role for regulators to play but we can’t blame this on any single party”.

The Binance chief also mentioned that Indonesia’s tax regime isn’t optimal and that licenses should be available more easily. He further argued that the “industry is still growing, we are still building”.

The FTX collapse has caught the attention of U.S. lawmakers. Senator Elizabeth Warren said that the FTX fall uncovers fragility in the crypto space. However, Coinbase chief Brian Armstrong slammed the SEC adding that the lack of regulatory clarity is causing more pain.

(Source: Coingape)

Though the fallout of FTX has sent shock waves across the whole crypto industry but it is an eye opener for crypto investors as well as for regulators who are responsible to protect the rights of investors. They need to come up with strict regulation to scrutinize exchange and all crypto holding companies to maintain transparency in their day-to-day transactions and set high standards of business to avoid such incidents in future.

[Smartprofit]

I'm not sure if regulation is what cryptoassets need. 

Bitcoin was originally created as a financial asset independent of legal regulation. 

Bitcoin is governed by a built-in mathematical algorithm.  The development of bitcoin should be minimally dependent on the human factor.  Monero developers adhere to a similar ideology. 

Who needs crypto assets that are fully regulated?  Pseudo decentralized structures with censorship?  How are they different from traditional finance?  I'm not sure if this is a good solution...

[gantez]

Regulation will not go far to protect the crypto industry. The trust system that only blockchain can guarantee is the way it has been built but unfortunately, some ideology for more wide coverage has make the system almost not rely on blockchain as first source of evidence in transaction but the exchange was brought to play this part instead of blockchain. Trading is the point again that is giving exchange the relevance but the trust is becoming issue with exchange.

[Hydrogen]

Definitely do not want greater regulation. Especially not on a global scale, which would apply to all countries. Transparency has nothing to do with the FTX case. Which was entirely based on fraud on a massive scale, as well as insider crime.

What comes after global crypto regulation? Global bans on proof of work mining to "save the environment"? Global minimum income tax rates of 15%, which is something they tried to pass not long ago.

I would have to guess motives behind pushes for regulation are the only thing transparent here. The motives are not good and the results and implications would not be good, either.

[hatshepsut93]

Funny to hear that from the CEO of an exchange that allows some absolutely degenerate leverages like x100 or x150, which is one of the big reasons why it's not on good terms with the US regulators. Shady shitcoins and tokens, "high yield" investment opportunities, projects that spend 100 times more on marketing than on development are bread and butter of exchanges like Binance, because they take their cut in trading and listing fees. It's not sustainable, because you can't scam people forever, but Binance is not demonstrating with their actions that they want to be a legitimate and sustainable business.

[STT]

So long as people know what they are buying and all those details are true and verified, that would superior to alot of places.  I've heard of worse behavior with fraudulent and impossible promises made to vulnerable consumers not even those who trade and from listed banks operating for a hundred years, caveat emptor.   You arent wrong but the risk in any investment is with the person making it not to be censored absolutely, correctly labelled and explained sure.

[dothebeats]

As the largest exchange still operating amid the downfall of its main competitor, and still standing despite the controversies they faced,the world will surely try to lend an ear to those who survived the onslaught. Binance is now in a position wherein it can basically 'advocate' for best practices in the exchange industry and people wouldn't really mind because they are the ones left standing. A great leverage use by CZ to promote their ideals and plans without telling the world about it. FTX could have been great, but its head honchos never bothered thinking twice before making any important decisions.

[Die_empty]

As the largest exchange still operating amid the downfall of its main competitor, and still standing despite the controversies they faced,the world will surely try to lend an ear to those who survived the onslaught. Binance is now in a position wherein it can basically 'advocate' for best practices in the exchange industry and people wouldn't really mind because they are the ones left standing. A great leverage use by CZ to promote their ideals and plans without telling the world about it. FTX could have been great, but its head honchos never bothered thinking twice before making any important decisions.

Although Binance is not totally pure from certain crypto transaction irregularities but it has proved to be one of the well-managed exchange firms in recent times. When some exchanges and crypto related firms were sacking workers Binance was employing more staff because of its ability to manage funds. The firm spends less on advertisement more than other exchanges.

I would agree to some extent that lack of standard practice or regulation of the shitcoins space have really led to diverse challenges in the crytospace because most of them are fraudulent and mismanaged. Therefore, the government in partnership with some exchange firms can come up with some standards that would ensure that these crypto firms are guided by rules and regulations that would make them adopt best practices in their business transactions. This might reduce their manipulations and sharp practices. But decentralized platforms should be given the freedom to carryout their operations without government regulations because they have never been a challenge to the bitcoin industry.       

[pooya87]

Too much regulations and transparency is not good for the regulators' bosses either. Imagine if FTX were transparent, Zelensky would have never been able to take American tax payers money and invest it in FTX in first place. Not to mention that a lot of big and powerful money launderers like this would be angry and prevent that transparency laws from going forward.

[TimeTeller]

As the largest exchange still operating amid the downfall of its main competitor, and still standing despite the controversies they faced,the world will surely try to lend an ear to those who survived the onslaught. Binance is now in a position wherein it can basically 'advocate' for best practices in the exchange industry and people wouldn't really mind because they are the ones left standing. A great leverage use by CZ to promote their ideals and plans without telling the world about it. FTX could have been great, but its head honchos never bothered thinking twice before making any important decisions.

I am seeing that CZ is indeed using their situation right now to be heard by public or any government.
They are in good position to present some radical changes for the betterment of this crypto industry.
However, it would take the cooperation of other stakeholders to successfully implement what they have in mind.
It may take time but if they will push thru such changes, they may see their fruits of their labor.
They have their financial capabilities right now, and they have the respect of people, so they should strike while the iron is hot.

[Bananington]

The FTX collapse has caught the attention of U.S. lawmakers. Senator Elizabeth Warren said that the FTX fall uncovers fragility in the crypto space.

This is what I have been expecting the lawmakers to say all along, this is the inside thoughts of so many people, they are not completely wrong after all, they have a good reason to say and think this. To address this issue, Global crypto standards and clearer regulations can be  assistive in ensuring that this fragility in the crypto space in the terms of the senator is solved.

[silbertlee]

Definitely do not want greater regulation. Especially not on a global scale, which would apply to all countries. Transparency has nothing to do with the FTX case. Which was entirely based on fraud on a massive scale, as well as insider crime.

What comes after global crypto regulation? Global bans on proof of work mining to "save the environment"? Global minimum income tax rates of 15%, which is something they tried to pass not long ago.

I would have to guess motives behind pushes for regulation are the only thing transparent here. The motives are not good and the results and implications would not be good, either.

That's true, and I'll stand by your argument. I don't want Bitcoin to be regulated. As the world's largest centralized exchange, Binance is essentially restricted by the policies of various countries. Binance accepts supervision and specifies industry standards, and increasing transparency is the only option. But the essence of the encrypted world is decentralization. Without this line of defense, the encrypted world will collapse. Maybe the blockchain will continue to go on, but this application in the financial field will lose its meaning.

[ChiBitCTy]

I am not going to act like I know everything there is to know about crypto and regulation around it, what's best for crypto etc, but I do think I have to agree with him that more oversight is necessary if bitcoin and or cryptocurrencies are to succeed in the long term.  I am not calling for all out regulation, but a certain level of it is necessary.  Event's like this are embarrassing as all hell for bitcoin and cryptocurrenchy as a whole.

Oh and Brian Armstrong, the biggest con-man of them all, would say that. He's got no room to talk.