Binance CEO Says the Industry has been Setback a Few Years With FTX Saga

The blockchain industry has been experiencing a lot of challenges due to the fallout of one of the biggest crypto exchanges, FTX. 

So many notable industry experts and stakeholders have given their opinions on what they thought brought about the current crisis in FTX. Some have also highlighted what they think the industry will look like going forward.

The CEO of the largest cryptocurrency exchange, Binance, Changpeng Zhao, has shared his thoughts on how the cryptocurrency market would rebound following the demise of FTX. Zhao expressed his views during the most recent Indonesia Fintech Summit. Zhao stated that the incident with FTX was disastrous for the sector and significantly undermined customers' confidence.

“I believe that we have essentially taken a couple of years back. Regulators will examine this industry much more closely going forward, which is probably for the best, to be honest”, says Zhao during the interview.

Zhao also highlighted that while retail investors may experience a setback in the short term due to the collapse of FTX, he believes that debates about how to manage risks throughout the crypto ecosystem should start now to avoid similar occurrences.

A Call to Action for Crypto Exchanges

In the midst of the ongoing saga with FTX, the Federal Deposit Insurance Corporation (FDIC), a US government agency burdened with the responsibility of preserving the financial industry, has issued a warning letter to five crypto companies to stop making false claims about their customers that they are insured. The erring companies include FTX US, Cryptonews.com, Cryptosec.info, SmartAsset.com, and FDICCrypto.com.

The FDIC's letter highlighted a tweet from FTX.US regarding the situation where the President of FTX.US, Brett Harrison, stated that "direct contributions from employers to FTX and stocks are stored in FDIC-insured accounts."

FTX.US and SmartAsset.com responded to the letter by saying that they have removed the content from their online platforms.

In a bid to ensure safety in the crypto space, Cyprus officials are reportedly about to suspend the FTX's European license due to its recent instability.