Binance's CEO says he'll never let his trade exposed

Binance's CEO says he'll never let his trade exposed

CZ raised concerns about Binance and the market.

Binance's founder and CEO, Changpeng Zhao, said on Wednesday that he would never let his trade expose itself to the pressure now engulfing two other major crypto players - Gemini and Genesis.

Even so, questions are swirling around Binance, the No. 1 global cryptocurrency exchange with $11B in daily trading volume, as the market copes with the fallout from the FTX meltdown in November, and now the news that conglomerate DCG is under investigation by U.S. prosecutors. DCG controls Genesis, a lending platform that froze customer withdrawals two months ago.

Binance's withdrawals were attributed to a one-week period in December, said Binance data firm Nansen. On Tuesday, Forbes said investors withdrew $360 million from the exchange, down from $360 million a year ago. CryptoGecko said its BNB token is up 13% in the last seven days compared to a 10% rise in Ether.

In a far-ranging interview, Zhao sought to address several of those concerns. Binance was profitable and committed to employing best practices to run a critical part of the $857B cryptocurrency market, he said.

Zhao said he was confident that China will take steps to make sure that a woman's rights are safeguarded.

For many of the investors who gathered for this annual conference, trust and proof of reserves have become a top priority as the industry grapples with the worst year since Bitcoin hit the market 14 years ago.

Binance talks to Nicolo Stohr, CfC St Moritz's CEO. Concern that DCG may be the next domino to fall is a hot topic, especially after Cameron Winklevoss, the chief executive of crypto trading firm Gemini, publicly accused Barry Silbert, DCG's counterpart, of accounting fraud on Tuesday. Winklevoss said that Gemini is poised to sue DCG for not returning $900M in customer funds used as part of its Earn yield business.

The failures that have whipsawed crypto since the collapse of the Terra ecosystem last May have been explained by Zhao. Crypto, a far more Darwinian venture, operates in a more Darwinian way than standard finance, where central banks stand ready to bail out troubled lenders with taxpayer-funded bailouts. And Zhao said that's how it should be.

Binance's own problems stem from more regulatory scrutiny, which has led to a significant increase in regulatory scrutiny. As U.S. law enforcement and regulatory agencies step up a crackdown on the industry, Zhao was careful to strike a conciliatory note toward greater oversight. Binance has been criticized for not domiciling in one area like a traditional exchange and submitting to conventional licensing procedures.

The pressure is set to continue to rise in the years to come. Crypto firms are regulated by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, among other agencies, to register their offerings, adhere to disclosure regulations, and perform customer identity checks. Binance's bid for a new headquarters is a sea change for outfits like Binance that have long sought to have no fixed headquarters.

What are the best examples to get global consumer confidence?