Binance Denies Operational Similarity to FTX

Richard Teng, the head of regional markets at Binance, was adamant that the world’s largest cryptocurrency exchange shares no operational similarities with the collapsed FTX exchange. During the Token2049 conference in Singapore, he addressed various concerns related to Binance, including regulatory issues, user experience, and potential successors to the current CEO.

Teng emphasized that Binance and FTX have distinct differences in terms of asset management and customer relations, rejecting any comparisons drawn between the two exchanges. He also challenged the validity of associating Binance with FTX, citing their contrasting asset backing policies. Binance maintains a 1:1 backing of its assets, ensuring transparency and security for its users.

“There were different rumors and FUD after FTX. People tried to associate us, which is totally untrue. Our assets are backed one-to-one.”

Binance’s latest proof of reserves report confirms the exchange’s strong financial position and ability to cover user assets in case of any contingencies. The report revealed over-collateralization of various coins, with Bitcoin (BTC) and Ethereum (ETH) exceeding 5%, and BNB, USDT, and BUSD reaching 114%, 118%, and 107%, respectively.

In addition, Teng praised Binance’s commitment to complying with global regulations and welcomed the Markets in Crypto Assets (MiCA) regulation as a significant step in establishing industry standards for all stakeholders. He acknowledged that the divergent treatment of regulations across different jurisdictions poses challenges for global platforms like Binance, highlighting the need for harmonized standards.

“This disparate treatment makes life very difficult for global platforms like for ourselves. In terms of local deployment, we need to understand how the rules and regulations are very different. So, what we hope for is harmonized standards….. MiCA is a step in the right direction.”

Addressing Regulatory Concerns and Russian Market

Teng reassured stakeholders that Binance remains committed to addressing regulatory hurdles and ensuring full compliance. Regarding recent Russian regulatory concerns, although no decisions have been made yet regarding the Russian market, Teng reiterated Binance’s dedication to adhering to global standards, particularly when dealing with sanctioned firms.

“On our plans for Russia, we have stated very clearly in the last couple of weeks that all options are on the table. We continue to explore what we need to do for that particular franchise going forward.”

In the past month, Binance faced criticism for listing two sanctioned Russian banks in its peer-to-peer services. However, in line with efforts made by competitors like Bybit and OKX, Binance has taken steps to delist these banks from its platform.

Amid regulatory setbacks and the Russian incident, several Binance executives have left the company. While Binance’s CEO, Changpeng Zhao (CZ), downplayed the departures, industry observers express concerns over the potential implications of these departures.

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