Changpeng Zhao talked about the FTX liquidity crisis and said that this situation dragged the growth of this sector by a few years.
In the last three days, the whole crypto industry faced a downfall because of the FTX exchange liquidity crisis. In the present time, almost all the crypto investors are under huge fear from all the Centralised crypto exchanges & related services.
Recently Speaking at Indonesia Fintech Summit 2022, Binance CEO & founder Changpeng Zhao said that the latest crisis in the crypto sector caused a very big downfall in the crypto industry along with degradation in the trust level. He also believes that this thing degraded the confidence of most of the crypto investors over the use of crypto companies.
Further Binance CEO indirectly stated that it will bring a hard situation for the crypto companies to provide services under full compliance.
“I think we’ve been set back a few years now. Regulators rightfully will scrutinize this industry much, much harder, which is probably a good thing, to be honest,” Zhao said.
Binance’s CEO believes that it is a short-term issue for retail investors but it will help this crypto industry in the long term, where it force & guide the crypto companies to provide services under a very restricted & safe ecosystem.
Initially, Binance CEO was trying to save the FTX exchange customers against the liquidity crisis but the Binance team found that the exchange mismanaged the user’s funds & also some investigations are going on against the exchange.
“Original intention was let’s save the users, but then the news of misappropriating user funds, especially U.S Regulatory Agencies investigations (made us realize) we can’t touch that anymore,” Zhao said.
Zhao also said that increasing crypto education among the regulatory bodies & transparency behind the back-end operations of the crypto companies will help to grow this sector.
Read also: Tether freezes 31.4M USDT following FTX Exchange hack news
Binance CEO admits FTX liquidity crisis degraded investors’ confidence
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