The CEO of Binance, the largest online exchange that trades cryptocurrencies, said it was setting up a recovery fund to help people in the industry, while saying the industry “will do well.”
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The CEO of the largest online exchange that trades cryptocurrencies said Wednesday that it is setting up a recovery fund to help people in the industry, saying the sector “will be fine.”
In an interview with CNBC’s Dan Murphy at Abu Dhabi Finance Week, Binance CEO Changpeng Zhao said, “Today’s powerful industry players are likely to be harmed in the short term. It hopes to protect a prominent industry player.
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“That doesn’t mean you can save everyone. If a project is poorly managed on multiple fronts, you can’t help them anyway.”
Zhao said cryptocurrencies “showed extreme resilience”, suggesting he did not expect the recent turmoil in the industry to cause long-term damage. did not specify the exact number of
His comments arrive just a week after Binance canceled the deal To rescue rival exchange FTX declared bankruptcy on Friday.
the price of Bitcoin Breaking below $17,000 for the first time since 2020, with so-called “crypto-contagion” concerns Could lead to the downfall of other big industries, Crypto.com, etc. CEO of the company denied the allegations The platform said it was “business as usual.”
“In the short term, there will be a lot of pain, but in the long term, efforts are accelerating to make the industry healthier,” Zhao said.
The CEO on Monday said Binance had “slightly increased withdrawals” last week, but he said: This was consistent with other dips at the market.
“Every time the price goes down, we get more withdrawals,” said Zhao. “It’s very normal.”
Regulation helps but doesn’t solve everything
Zhao said he wants to create an organization that can “establish best practices” across the industry. known for its lack of regulation.
“Regulations have to be tailored to this industry,” said Zhao. “Regulation will not solve all of this, it will reduce it. It is important, but we need to have the right expectations,” he added.
Zhao pondered how there were elements of traditional finance that could help cryptocurrency markets become more regulated and more trusted, but adapted practices to suit the purpose. It is necessary to let
The “transparency” and “audit” aspects of traditional finance could benefit the cryptocurrency industry, but need to make a “subtle but very important” difference, according to the CEO. That’s what I mean.
“Too many regulators are stuck in a conventional mindset and need to get into the crypto mindset,” he said.
The comment echoes comments from Ripple CEO Brad Garlinghouse, who said that while the idea that cryptocurrencies are “unregulated” is exaggerated, “transparency builds trust.” is doing.
Garlinghouse said on CNBC’s “Squawk Box Europe” Wednesday that “cryptocurrencies need to mature as an industry, not just sunshine and roses.”
Economist Nouriel Roubini offered a different take in an interview with Abu Dhabi Finance Week, saying, Crypto and some of its major players explained as a “totally decaying ecosystem”.
A New York University professor said there are “7 C’s to cryptocurrency”.
— CNBC’s Jenni Reid and Ryan Browne contributed to this report.
