By Richard Hines
For the creation of a cryptocurrency recovery fund that would help stabilize businesses and projects on the verge of liquidation, Binance, one of the biggest cryptocurrency exchanges, is seeking out support from the Middle East to help assist in this project. This was formerly a project that FTX pushed for until it crashed and could no longer proceed with this.
A Fund For Firms On The Verge Of Liquidation
Binance only recently revealed its decision to launch this fund initiative with the intention of assisting cryptocurrency enterprises with solid foundations but facing a liquidity constraint.
Changpeng Zhao (CZ), the CEO of Binance, met with investors from Abu Dhabi regarding this matter. This meeting’s goal was to raise money and provide assistance for Binance’s new cryptocurrency fundraising project.
Last week, CZ conducted promising conferences with other top organizations and potential backers to assess the viability of this project launch. These groups comprised Arab Emirate national security bodies, Sheikh Tahnoon, and other people.
When the FTX issue happened at the beginning of this month, Binance was driven to pursue this initiative in order to assist other organizations on the verge of becoming like FTX in regaining their status and stabilizing their affairs.
However, the quantity of funding and the project’s inner workings is yet to be revealed to the public.
Minutes Of The Abu Dhabi Conference
CZ’s talks in Abu Dhabi also focused on regulatory issues pertaining to cryptocurrency and its activities. Since the FTX collapse earlier this month, the question of crypto regulation has been on everyone’s mind. Many sectors and legislators have urged for crypto to be regulated in order to reduce risk in this field while also protecting users’ savings and interests.
In this conference, however, a Binance representative discussed how Middle Eastern regulators may lead the globe by investigating more strictly evidence of funds custody requirements for enterprises and crypto exchanges.
Prior to the FTX crash, Sam Bankman Fried, the CEO of FTX, had taken some strides toward these rules with lawmakers over the necessity for the crypto space to come under regulations.
FTX had also moved to provide safety for firms in danger of liquidation before it collapsed itself. Binance seems to have taken up the mantle of leadership in this quest.