The CEO of Binance urged for greater industry regulation as crypto firms face liquidity issues amidst the crypto rout.
“There should be clearer regulatory guidelines on reserves for different types of businesses in the crypto space,” Changpeng Zhao said.
He also called for disclosure and transparency requirements, lamenting crypto projects for cutting communication when they are in trouble.
“More regulatory guidelines in this area would definitely help,” he said, mentioning that Binance urges industry players to maintain communication with users.
The crypto market downturn has seen the prices of major cryptocurrencies plummet with some crypto firms struggling to survive.
“We’re seeing that a number of firms are insolvent, and a number of projects have gone under,” he said. “But it’s a small number in the grand scheme of things.”
Zhao said Binance, the world’s largest cryptocurrency exchange, would step in to help struggling firms if needed the way crypto exchange FTX has.
“We do look at stressed assets, companies that are insolvent, and we’d like to help them either with loans, minority investments or even majority acquisitions,” he said. “All of those things are on the table.”
He said Binance has done “quite a few” deals and is looking at 50-100 deals.
“Everybody knows we have the largest cash reserves in the industry,” he said. “They are talking to us.”
For all the latest Lifestyle News Click Here
For the latest news and updates, follow us on Google News.
