In the United States, Binance has tried to boost its legitimacy by hiring a slate of American executives for Binance.US, its subsidiary based in Palo Alto, Calif. To dispel the view that Binance has skirted regulations, the company recently announced it had acquired a Japanese cryptocurrency exchange, allowing it to enter the Japanese market “as a regulated entity.” Zhao also couldn’t resist taking a dig at his rival. Zhao, known in the crypto community as CZ, recently sent reassuring messages to his eight million followers on Twitter, pitching himself as a savior of the cryptocurrency industry. Now, the collapse of FTX has provided Binance with an opening to establish its credibility with investors and regulators more publicly. Still, recognizing that regulation was inevitable, Binance began taking steps in the past year to scrub its reputation as a shadowy giant with no headquarters that doesn’t always follow the rules. Zhao, who once described regulation as a “risk” for his company, largely avoided engaging with lawmakers except in countries friendly to crypto. Bankman-Fried ran a highly visible campaign to court lawmakers and shape cryptocurrency regulation in the United States, while spending furiously on advertising to promote the FTX brand, Mr. As the rapid growth of their companies turned both into paper billionaires, their competing visions of the cryptocurrency industry - and whether and how it should be regulated - held enormous sway, especially with governments around the world poised to crack down.īut while Mr. Zhao’s actions were the culmination of a complicated relationship between the founders of the two biggest cryptocurrency exchanges, one that has sometimes involved the two men sparring publicly and taunting each other on Twitter. Bankman-Fried was arrested in the Bahamas after American prosecutors filed criminal charges against him. Bankman-Fried had no choice but to put his company into bankruptcy. But after examining FTX’s books - and seeing the extent of its financial troubles - Mr. Zhao, the founder of Binance, the world’s largest cryptocurrency exchange, initially agreed to provide a loan and buy FTX to save it. “I need your help for the sake of the industry and users.” Zhao, according to a person with knowledge of the exchange. “I don’t know how things got so bad between us,” Mr. CNBC's MacKenzie Sigalos contributed to this report.In early November, just days before the cryptocurrency exchange FTX filed for bankruptcy, its founder, Sam Bankman-Fried, reached out to his archrival, Changpeng Zhao, to ask for help. Bloomberg reported in June that the SEC was investigating whether the 2017 token sale amounted to a security offered that should have been registered with regulators. There's a circulating supply of about 160 million BNB out of a total maximum supply of 200 million, according to CoinMarketCap. On its website, the company says people can "use BNB to pay for goods and services, settle transaction fees on Binance Smart Chain, participate in exclusive token sales and more." Areas where BNB can be used, the site says, include payment, travel and entertainment. Like all of the major crypto projects and companies, Binance developed its own currency. A day later, Binance backed out of the deal, stating that FTX's "issues are beyond our control or ability to help." Personal Loans for 670 Credit Score or LowerįTX then faced an immediate surge in withdrawal demands, and Binance stepped in with a non-binding agreement to acquire the company as part of a rescue plan. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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