Binance, the largest cryptocurrency exchange in the world by trading volume, is working to put together a group of crypto companies with the goal of restoring confidence in the sector and is actively participating in upcoming legislation.
Many businesses have already expressed interest in joining the team. The person said that they covered the whole cryptocurrency sector, including individual projects, exchanges, and blockchain analytics companies without mentioning any specific companies.
After a wave of retail losses and company collapses last year, the global crypto industry is currently in a precarious position as it prepares for stricter regulation. The cryptocurrency exchange Binance is not the first to support a self-regulatory body (SRO). Since 2019, the Winklevoss-owned Gemini has made noise on such initiatives.
While Binance will not operate the consortium, a source informed it “will be run in as decentralized manner as you possibly can amongst many different projects to ensure an alignment with the community.”
According to the source, the group’s initial objectives are to collaborate with authorities all around the world and demonstrate how far the business has come in terms of battling illegal elements. The previous FTX boss Sam Bankman-unwise Fried’s consolidation of power in the cryptocurrency industry was also cited as a factor in the founding of the group. They further added,
[The creation of the group is] also to ensure there’s a mechanism in place to call out shortcomings and bad behavior in the industry, and help avoid larger contagion issues.
