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Tag: Binance

  • Binance CEO says crypto industry needs clarity of regulations

    Binance CEO says crypto industry needs clarity of regulations

    The chief executive of dominant cryptocurrency exchange Binance called for new but stable and clear regulations for the industry in light of recent developments and participants “cutting corners”.

    “We’re in a new industry, we’ve seen in the past week, things go crazy in the industry,” Changpeng Zhao told a gathering of G20 leaders at a summit in Bali. “We do need some regulations, we do need to do this properly, we do need to do this in a stable way.”

    His comments come as crypto industry peers and partners outline steps to deal with the collapse of Sam Bankman-Fried’s rival exchange, FTX. FTX filed for bankruptcy on Friday after a week of seeing customers pull assets and Binance abandoning a rescue offer.

    “I think the industry collectively has a role to protect consumers, to protect everybody. So it’s not just regulators. Regulators have a role but it’s not 100 per cent their responsibility,” Zhao said.

    On the weekend, he had tweeted that Binance had stopped accepting deposits of FTX’s FTT token on its platform, and urged other exchanges to do the same.

    Reuters

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  • ‘Crazy and scary’: Here’s what Nithin Kamath has to say about the crypto world 

    ‘Crazy and scary’: Here’s what Nithin Kamath has to say about the crypto world 

    Zerodha founder and CEO Nithin Kamath has hailed the Indian capital market infrastructure and regulations and said the entire system does not get enough credit for being among the best globally. In a LinkedIn post that has gone viral, Kamath talked about the crypto world and that brokers and exchanges can act as banks in most markets.

    He added, “In India, all securities are held by the customer at the depository. All unused funds are sent back monthly/quarterly and one client’s funds can’t be used to fund another. In most markets, brokers can hold customer securities and funds indefinitely and use them any way they want.”

    The Zerodha founder went ahead and commended the Securities and Exchange Board of India (SEBI) for their efforts aimed at protecting the interests of the retail investors by reducing risks and making markets safer. 

    Kamath’s comments come after a deal between crypto exchanges FTX and Binance collapsed. The deal was touted as an emergency rescue in the world of cryptocurrencies as investors pulled their money back from risky assets. 

    Binance said in a statement accessed by news agency Reuters, “As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com.”

    After this, FTX CEO Sam Bankman-Fried said in a message to employees, “I’m working, as quickly as I can, on the next steps here. I wish I could give you all more clarity than I can.” 

    Meanwhile, cryptocurrency market-cap saw a decline of 7.82 per cent to $835.16 billion. Key tokens such as Bitcoin and Ethereum also fell to $16,612.50 and $1,181.61 respectively. Market cap of Bitcoin and Ethereum stands at $319.67 billion and $145.09 billion at the time of writing this story, according to coinmarketcap.com.

    Also read: FTX CEO looking at all options as Binance deal collapses

    Also read: No IIM or Harvard: How Nithin Kamath built Zerodha without a management degree

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  • Binance Walks Away From FTX Acquisition

    Binance Walks Away From FTX Acquisition

    • Binance walks away from FTX deal following due diligence.
    • Firm also mentioned U.S. investigations of FTX.
    • Retail investors are left hanging without access to funds.

    Binance will not move forward with the acquisition of rival exchange FTX, the company said in a tweet Wednesday afternoon.

    “In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help,” Binance said.

    The news leaves retail investors wondering whether they’ll ever gain access to funds held by FTX again after the exchange came under extreme liquidity pressures earlier this week. The turmoil likely stemmed from a CoinDesk article that detailed worrisome links between FTX, its native token FTT, and Alameda, a research and trading firm also owned by FTX boss Sam Bankman-Fried. The coverage got the attention of Binance chief Changpeng Zhao, who shortly after tweeted that his company would be selling all FTT tokens it held.

    Namcios

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  • Binance Intends On Buying FTX – Here’s What’s In The Tentative Deal

    Binance Intends On Buying FTX – Here’s What’s In The Tentative Deal

    Cryptocurrency exchange Binance may soon acquire rival FTX, according to a tweet by Binance CEO Changpeng Zhao.

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  • US Investigating FTX Empire Over Handling Of Customer Funds: Report

    US Investigating FTX Empire Over Handling Of Customer Funds: Report

    • SEC, CFTC reportedly probing FTX over handling of customers’ funds.
    • Investigations also relate to lending.
    • SEC probe reportedly predates Binance’s acquisition of FTX.

    U.S. financial regulators have apparently been actively following the carnage that’s ensued in cryptocurrency markets over the past couple of days.

    According to a report by Bloomberg, people familiar with the matter said the Securities and Exchange Commission and the Commodity Futures Trading Commission are investigating the liquidity crunch at FTX that led to its non-U.S. operations being acquired by competitor Binance, the world’s largest exchange, on Tuesday.

    Namcios

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  • Bitcoin Falls Below $20,000 After Twitter Row Between Billionaire Crypto Executives Triggers Withdrawals From FTX

    Bitcoin Falls Below $20,000 After Twitter Row Between Billionaire Crypto Executives Triggers Withdrawals From FTX

    WATCH

    3:18

    | Nov 08, 2022, 11:11AM EST

    The price of bitcoin fell below $20,000 on Monday—dropping alongside other major cryptocurrencies—amid concerns about the financial health of FTX a day after competitor Binance announced it would dump FTX’s token.

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  • Billionaire Changpeng Zhao’s Binance To Offload All Remaining FTT Tokens Of Sam Bankman-Fried’s FTX

    Billionaire Changpeng Zhao’s Binance To Offload All Remaining FTT Tokens Of Sam Bankman-Fried’s FTX

    Changpeng Zhao, the billionaire cofounder and CEO of Binance, said on Sunday that his cryptocurrency exchange is selling all its remaining tokens of FTX, fellow billionaire Sam Bankman-Fried’s trading platform, that are worth about $580 million.

    Zhao wrote on Twitter that the decision to offload 23 million tokens, called FTT, was due to “recent revelations that have come to light,” without giving more details. He later added that it was “post-exit risk management, learning from Luna,” referring to the failed crypto coin, but stressed that the move was not against a competitor.

    Issued by Bahamas-based FTX, FTT tokens grant its holders a discount on trading fees and access to more features on the crypto derivatives trading platform. The cryptocurrency is worth nearly $3 billion over a 24-hour period as of Monday, data on Coingecko shows.

    The liquidation is part of Binance’s exit from FTX equity that started last year, when Binance received about $2.1 billion in Binance USD (the stablecoins issued by Binance) and FTT tokens, Zhao disclosed. The latest withdrawal of FTT coins will take a few months to be completed.

    Binance was aiming to “de-risk” its platform after seeing “alarming trends” in the balance sheet of companies tied to Bankman-Fried, according to a person close to Binance who asked not to be identified as the information is not public. Binance declined to comment.

    Last week, crypto-focused news site Coindesk reported that Alameda Research, the sister quantitative trading firm of FTX, is made up largely of FTT tokens. The claim was later refuted by Alameda Research CEO Caroline Ellison, who said the report failed to reflect another $10 billion worth of the firm’s assets and that it has taken hedges.

    Following Zhao’s announcements, Bankman-Fried wrote on Twitter that he respects what people have done to grow the crypto industry and pointed to Zhao. FTX didn’t immediately respond to a request for comments on Monday.

    Binance announced its strategic investment in FTX in 2019, shortly after the crypto derivatives exchange was founded in Hong Kong. A year later, Zhao told Forbes that Binance had given up its equity stake in FTX, saying it’s part of “a normal investment cycle” following FTX’s tremendous growth.

    Zinnia Lee, Forbes Staff

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