Binance, the world’s largest cryptocurrency exchange by trading volume, is seeking to form a consortium of crypto companies to restore trust in the industry by taking an active role in shaping new regulations, according to a source at Coindesk.
Several cryptocurrency and blockchain analytics companies have already joined the venture, without being named. Binance declined to comment.
The global crypto industry is in a difficult position and is preparing for tougher regulations after last year’s Waterloo of securities and companies. Binance is not the first exchange to support a self-regulatory body. Winklevoss’ Gemini has been supporting a similar effort since 2019.
The consortium will not be run by Binance, the source said, but “in as decentralized a manner as possible to ensure alignment with the community.”
The aim is to achieve cooperation with regulators around the world to subsidize the industry’s credentials with regard to combating criminal elements. The reason for setting up the group was apparently the disastrous concentration of power on the part of former FTX boss Sam Bankman-Freed.
“The group wants to create a security mechanism to highlight inefficiencies and problematic behaviour in the industry to prevent further contagion,” the source added.
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