Biggest crypto exchange Binance urges new industry rules

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New regulations are needed according to the head of the world's biggestcryptocurrencies exchange.

The heads of the G20 group of nations were at the conference.

A recovery fund has been announced by the company.

The FTX exchange's insolvency shook the industry and wiped out billions of dollars in the market.

Many small investors are worried about their losses because of the failure of the exchange founded by Sam Bankman- Fried.

"We're in a new industry, things go crazy in the industry, we've seen it in the past week," Mr Zhao said, according to the news agency.

We need some regulations and we need to do this in a stable way.

The responsibilities of thecryptocurrencies were also acknowledged by Mr. Zhao.

The industry has a responsibility to protect everyone. He said it was not just regulators.

Compared with other financial sectors, there are few protections for consumers when it comes tocryptocurrencies.

Stable coins are designed to have a stable value linked to traditional currencies or assets such as gold.

The recovery fund for strong companies that can't find enough cash or assets that can be easily converted into cash to cover their immediate needs would reduce the risk ofcascading negative effects after FTX's bankruptcy.

To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify. 1/2

— CZ 🔶 Binance (@cz_binance) November 14, 2022

The collapse of FTX's exchange, which wiped out an estimated $200 billion, was caused by the abandonment of a rescue deal for the exchange and the announcement that it would sell its holdings of FTX's coin.

It is feared that other businesses could be at risk.

The Commons Treasury Select Committee in the United Kingdom was able to quiz business figures as part of their inquiry into thecryptocurrencies industry.

Daniel Trinder denied that the company's actions had contributed to the collapse of FTX.

He said that it was caused by failures around governance, risk management, excessive leverage, and inappropriate use of clients' assets.

The implications for the industry were realized by Binance when they tried to save FTX.

The exchange started the due diligence process and we pulled out of it.

He argued that the need for regulation was shown by the incident.