Crypto Industry Coalition Formed By Binance, Many Companies Announce Participation: Report

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Restoring trust in the cryptocurrency industry

Binance is working to form a consortium to restore confidence in the cryptocurrency industry. Citing multiple sources, CoinDesk reported on the 9th.

The consortium will not be led by Binance, but will work with the community and be operated jointly by member companies. The main purpose is to actively participate in the development of future regulations around the world.

Many companies have already announced their participation. Cryptocurrency exchanges, blockchain analytics firms and individual projects will participate, sources said.

In addition, Changpong Zhao (CZ), CEO of Binance, announced his intention to hold an AMA (Ask Me Anything) and establish an industry alliance in November last year immediately after the FTX bankruptcy.

The consortium reported this time is likely referring to the industry consortium CZ was talking about at the time. According to CoinDesk sources, it is now clear that a number of companies have already announced their participation and that formation is underway.

Binance Initiative

In 2022, in the cryptocurrency industry, the Terra riot, in which stablecoins could no longer maintain their value, and the bankruptcies of lending companies and FTX, etc., made the world’s regulatory bodies even more scrutinized. This is the background to the formation of the corporate alliance.

connection: Terra USD (UST) dipeg turmoil Summary of response from Terraform Labs and exchanges

connection: Severe shock in the virtual currency market, summary of Alameda shock and FTX turmoil

Like the AMA mentioned above, Binance quickly began working to alleviate user concerns and restore trust in the industry after the FTX bankruptcy. Binance has actually started by appealing the need for proof of reserves by exchanges, and the “Recovery (Business Revitalization) Initiative (IRI)” has been started to revive the industry.

connection: Binance, Proof of Assets Starts with Bitcoin

Earlier this year, CZ and head of product Mayur Kamat gave a livestream on Binance’s product development looking back at 2022 and looking ahead to 2023.

At this time, regarding the outlook for 2023, he explained that reliability and transparency in user protection and compliance (legal compliance) are priorities. Kamat said the team is working together to develop a new solution to also conduct proof of solvency, following the wealth proof it launched last year.

connection: Binance CZ talks about this year’s prospects such as measures to strengthen “asset proof”

Meanwhile, the head of Binance’s Asia-Pacific unit said proving the company’s assets and liabilities was difficult, Bloomberg reported on May 8. Proving Binance’s assets and liabilities may take time, he said.

Due to the characteristics of cryptocurrencies such as large price fluctuations, there are no agreed standards for audits, and the first goal is to hire an auditor who can check the company’s balance sheet.

What is Binance

Operates a major virtual currency exchange with a large number of traded brands, trading volume, and registered users. In addition, we are developing a wide range of businesses such as the activities of the venture capital department, the provision of educational content, and philanthropic activities. In November 2022, it announced its entry into the Japanese market.

Cryptocurrency Glossary