Binance CEO announces plans on uniting cryptocurrency players to interact with politicians and regulatory authorities

Major players in the digital currency industry can team up to cooperate with authorities and regulators. This statement was made by the CEO of Binance, Changpeng Zhao, at the AMA session on Twitter Spaces.

“The association will provide liaison with regulators, as well as support industry best practices, including transparency and proof of reserves,” he said.

The entrepreneur emphasized that Binance does not plan to take over the management of the new structure. This will be done by “a third party that has done this more than once in different areas.” Zhao also noted that “several regulators” had previously made a proposal to establish such an association.

“We will try to act as a communication hub to communicate about politics, ideological space, commenting on the pros and cons of certain practices,” Zhao said.

In addition, it was recently revealed that Binance intends to create a “recovery fund”, the task of which is to support investors who were affected by the collapse of FTX in order to avoid a “cascading effect”. Zhao at the same time acknowledged responsibility for the current crisis of the crypto market.

“As much as I’ve been accused of exposing, popping a bubble or whatever […] I apologize for any panic I’ve caused. But if there is a problem, the sooner we identify it, the better,” Zhao said.

The CEO of Binance also announced 6 important, in his opinion, criteria for centralized platforms. Zhao suggests not putting clients’ assets at risk, never using native tokens as collateral under any circumstances, publicizing asset data, having substantial reserves, carefully monitoring security, and avoiding excessive leverage.

The entrepreneur believes that each platform should follow these principles in order to maintain its credibility, especially amid the bankruptcy of FTX.

“We cannot allow a few bad players to tarnish the reputation of the industry when it is still in its infancy,” wrote the head of Binance. “Our role is primarily to protect users.”