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

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

Written by Radhika Parashar, Edited by Richa Sharma | Updated: 9 February 2023 18:09 IST

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

Photo Credit: Binance

The consortium will function as a decentralised group, not controlled by Binance

Highlights

Crypto witnessed investors exiting the sector following FTX fall
Binance is looking to bring an oversight over crypto to avoid such issue
The group is expected to expand in the coming days with more members

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.

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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.

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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.

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Further reading: Cryptocurrency, Binance, Blockchain

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More