The sudden downfall of top cryptocurrency exchange FTX will bring in more regulatory scrutiny and raise the difficulty of obtaining licenses around the world, Binance founder and chief executive Changpeng Zhao said in an internal note, which he shared with the public via Twitter on Wednesday.
See related article: Binance’s pending acquisition of FTX may attract attention of antitrust regulators
Fast facts
- “We did not master plan this or anything related to it,” Zhao said in his note, while acknowledging that consumer confidence in crypto has been “severely shaken.”
- “People now think we are the biggest and will attack us more,” he said.
- The world’s largest crypto exchange announced on Tuesday that it agreed to purchase its rival FTX amid reports of solvency issues.
- Zhao said Binance and the remaining cryptocurrency exchanges in the industry need to significantly increase “proof of reserves,” insurance funds and transparency.
- Binance increased its emergency insurance fund “SAFU” to US$1 billion equivalent in cryptocurrencies to safeguard users on Wednesday.
See related article: Binance becomes white knight for fallen FTX: How did we get here?
