Binance's CZ calls for stable and clear regulations in crypto industry amid FTX bankruptcy

livemint.com:

World's largest crypto exchange in terms of trading volume, Binance's CEO and co-founder Changpeng Zhao said there is a need for stable and clear regulations for the cryptocurrency industry in wake of Sam Bankman-Fried's FTX insolvency proceedings. The billionaire who goes by the nickname CZ believes that it's not 100% responsibility of the regulator to protect consumers, but also a collective role of the industry.

In a gathering of G20 leaders at a summit in Bali, Zhao said, "we're in a new industry, we've seen in the past week, things go crazy in the industry," adding, "we do need some regulations, we do need to do this properly, we do need to do this in a stable way," reported Bloomberg.

Further, Zhao also said, "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% their responsibility."

CZ's comments come after Bankman-Fried's FTX Group on November 11 filed for voluntary proceedings under chapter 11 of the United States Bankruptcy Code in the District of Delaware. FTX Trading, West Realm Shires Services (FTX US), Alameda Research, and approximately 130 additional affiliated companies (together with the FTX Group) have filed for insolvency.

Also, Bankman-Fried has resigned from his post as CEO at FTX Group. John Ray III has been appointed in his place as the CEO. Not just that, Bankman-Fried's entire $16 billion wealth was wiped out -- making it one of the greatest-ever destructions of wealth in history according to the Bloomberg Billionaire's index.

FTX's decision for Chapter 11 is to provide the Group the opportunity to assess its situation and develop a process to maximise recoveries for stakeholders.

FTX