Zhao said more information regarding the fund would be available in the next two weeks.
Abu Dhabi:
Binance Chief Executive Changpeng Zhao said on Wednesday that his company had seen significant interest from industry players in a recovery fund to help crypto projects facing a liquidity crunch following the collapse of rival FTX.
Speaking at a conference in Abu Dhabi, Zhao said he did not have an exact figure in mind for the size of the recovery fund.
“There are players who have strong financials and we should tie together; we have received significant interest so far,” he said, declining to name other exchanges or institutions at this point.
Zhao said that Binance has healthy reserves but did not specify how much the company would contribute to the fund.
“Crypto doesn’t need to be saved,” Zhao said. “Crypto will be fine.”
Zhao said more information regarding the fund would be available in the next two weeks.
The Binance boss said on Monday that such funding would help “mitigate further negative effects of FTX”.
The crypto industry is resonating with the collapse of Sam Bankman-Fried’s rival exchange FTX, which filed for bankruptcy on Friday, after users rushed to withdraw $6 billion in crypto tokens in just 72 hours.
Binance said in a statement on Wednesday that it received a Financial Services Permit (FSP) – a license to provide custody services to professional clients – from the Financial Services Regulatory Authority of Abu Dhabi Global Market, the emirate’s financial free zone.
“Obtaining this license is an important step in the development of Binance in Abu Dhabi and a reflection of the city’s progressive stance on virtual assets,” Dominic Longman, senior executive officer at Binance Abu Dhabi, said in a statement.
The United Arab Emirates has emerged as a crypto hub as many of the world’s largest crypto firms have set up commerce hubs in Dubai, including Binance, which is helping Dubai develop regulations for the industry in the city.
Kraken said in April it was the first global virtual asset exchange group to receive a full financial license from ADGM in the United Arab Emirates.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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