The recent collapse and bankruptcy of superstar crypto exchange FTX has sent shockwaves through the financial industry. In an effort to avert future collapses, which pose the serious potential to wipe out billions of dollars in investments, many have been clamoring for heightened government regulation of crypto and other fintech entities.
While conventional wisdom holds that increased oversight is bad for business, calls for new crypto rules have been joined by one particularly prominent voice: Changpeng Zhao (aka CZ), Chief Executive Officer of Binance, the world’s largest crypto exchange.
“We do need some regulations, we do need to do this properly, we do need to do this in a stable way,” CZ said in a recent conference in Indonesia. “The industry collectively has a role to protect consumers, to protect everybody. So it's not just regulators.”
As a means to do its part in ongoing customer protection efforts, Binance announced that it would be launching a brand-new industry recovery fund. The fund would “reduce further cascading negative effects of FTX” and its bankruptcy, CZ said in a tweet regarding the move.