Binance’s Crypto Consortium Goes Live, Aims to Oversee Potential Shortcomings

Binance has gathered a group of crypto industry players and experts to make sure that potential risks that usually scare away others from experimenting with the assets could be timely monitored and tackled. With this initiative, Binance CEO Changpeng Zhao is aiming at debunking myths and issues related to the crypto industry. The crypto exchange will not be running this consortium, but would rather give stakes to all the members and keep the operations decentralised.

Crypto-related individual projects, exchanges as well as blockchain analytics companies are part of this group, which will function as a ‘self-regulatory' body in the digital assets sector.

“The creation of the group is also to ensure there's a mechanism in place to call out shortcomings and bad behaviour in the industry, and help avoid larger contagion issues,” a CryptoPotato report quoted a person familiar with the matter as saying.

The members of this group will have open discussions and figure out solutions on making the industry safer and more accessible for potential investors.

After the FTX crypto exchange succumbed to liquidity crunch last year, it shook up the global crypto industry.

Following the incident, Binance had said that it was committing $1 billion (nearly Rs. 8,200 crore) to establish an industry recovery initiative (IRI) that would help needy firms from the digital assets sector.

In addition, the crypto industry has been attacked by hackers and scammers too many times that scared investors away.

Citing a Chainalysis report, Forbes had said that last year, over $3 billion (roughly Rs. 31,080 crore) was stolen in 125 hacks.

In the backdrop of these hacks, a large number of crypto investors and holders moved their assets into offline storages.

In January this year, the exchange also launched a cold crypto asset storage called ‘Binance Mirror' to cater to institutional investors.