If it is not too late, Binance has the plan to save cryptocurrency

November 21, 2022 By Jozeph P

(Image Credit Google)

The failure of FTX has wiped out billions of dollars from the market and cast doubt on the integrity of other cryptocurrency companies. Many companies have spent the last week scrambling to calculate their financial exposure to the collapse. Others, on the other hand, see the possibility of a crisis and are preparing contingency plans. Binance's CEO, CZ, has stated that the company will post a transparent "proof of reserves" to demonstrate that it has enough cash reserves to fund withdrawals. He also intends to establish a recovery fund to assist legitimate projects in hardship. CZ establishes best practices for exchanges, which can be summarised as "don't gamble, don't borrow, and don't cheat." Crypto exchanges have announced support for CZ's recovery fund or promised additional investments in crypto startups. Proof of reserves has been released or promised by Kraken, Bitfinex, Crypto.com, Huobi, OKX, and Kucoin. They believe that greater transparency will allow them to attract newcomers while reducing the risk of being caught in FTX-style accounting. [caption id="attachment_58073" align="aligncenter" width="1600"] Binance CEO

image credit: indiatoday[/caption] Some claim that the company's founder was creating a centralized product over which he had complete control. Hayden Adams, the creator of UniSwap, the world's largest decentralized exchange, is one of them. Crypto exchanges are bringing in place safeguards to avoid heightened regulatory scrutiny. The magnitude of the FTX collapse is inclined to enrage regulators all around the world. Some have highlighted that high-profile collapses have occurred numerous times in traditional finance, which could serve as a useful precedent for crypto regulation. For the past two years, the EU has been developing a new set of rules that will impose on crypto organizations. MiCA is intended to safeguard both consumer funds and financial stability. MiCA, if passed, will prohibit crypto companies from using accounting tricks to blur the lines between their own and their client's funds. Sam Bankman-Fried, the founder of FTX, is an outspoken advocate for tighter regulation of the cryptocurrency industry. He has since retracted his remarks, stating that some regulators "deeply impressed" him. The Securities and Exchange Commission or the Commodity Futures Trading Commission should take the lead, but questions remain.

By Jozeph P

Journalism explorer, tech Enthusiast. Love to read and write.

If it is not too late, Binance has the plan to save cryptocurrency

Walmart's GenAI Search Engine: Challenging Google's Dominance in Retail Search

Introducing the MSI Claw Handheld: Your Ultimate Gaming Companion

Uber Increases In-App Ads, Prompting Mixed Reactions from Customers

Apple's iOS 18: A Leap into the AI Era

Google's Regular Pixel 8 Won't Get Gemini Nano AI

MacBook Air M3 Makes Amends for M2's Storage Blunder

Samsung Unveils the Galaxy M15 5G

Elon Musk's xAI to Open-Source Chatbot Grok

Contra: Operation Galuga - A Modern Run-and-Gun Classic

Musk Confirms X's TV App Arrives This Week

7.9 percent of the bitcoin ATMs in the U.S. are provided by Cash Cloud

Celsius allegedly used customer funds to support its own cryptocurrency token

Amid FTX's Recovery of $5 Billion in Assets, Bitcoin Rises to its Highest Price in a Month

US-based crypto exchange Kraken will stop conducting business in Japan

CryptoWatch: Best Crypto to Buy for Christmas; FTX's Impact on Employees; Bitcoin Will Rise in 2023

Underpaid young people bet on crypto due to financial anxiety: Survey