In workers letter, Binance CEO embraces scrutiny from regulators amid potential FTX deal

Changpeng Zhao, the chief government officer of crypto change Binance also called “CZ,” warned customers its intention to amass FTX could invite scrutiny from international regulators — however the agency is prepared.

In a letter to Binance workers tweeted on Nov. 9, CZ stated although the deal to amass one other main crypto change was nonetheless within the works, regulators would doubtless “scrutinize exchanges much more” and make it troublesome to amass working licenses. He added that if the deal resulted in FTX happening, it might be a loss for the crypto trade and never a “win” for Binance.

“Folks now assume we’re the largest and can assault us extra,” stated the Binance CEO. “We’re used to being open and leaning into headwinds. The truth is, we embrace scrutiny. We should considerably improve our transparency, proof-of-reserves, insurance coverage funds, and many others. Much more to come back on this space.”

CZ introduced on Nov. 8 that FTX approached Binance for assist in response to a “vital liquidity crunch,” ensuing within the change signing a non-binding letter of intent to buy FTX. The Binance CEO stated on the time that the corporate was “assessing the scenario in actual time” and had the flexibility “to drag out from the deal at any time.”

FTX’s native token FTT has skilled vital worth volatility following information of the potential deal, dropping from greater than $19 on Nov. 8 to $4.71 on the time of publication. In his letter, CZ warned the Binance workforce to not purchase and promote FTT, simply because the change would hold its bag of tokens.

“We have to maintain ourselves to a better commonplace than even in banks,” stated CZ. “As I’ve stated many occasions over time, ignore the costs. Let’s hold our heads down and concentrate on constructing merchandise individuals use.”

Associated: Binance CEO shares ‘two massive classes’ after FTX’s liquidity crunch

Regardless of CZ’s willingness to embrace scrutiny from regulators, it’s unclear if authorities intend to behave to cease the deal from going by, as it might doubtless give Binance an awesome majority of the worldwide crypto market. In a press release to Cointelegraph, a U.S. Commodity Futures Buying and selling Fee spokesperson stated the regulatory physique was monitoring the scenario.