RIYADH: Cryptocurrency exchange Binance is urging other industry players to join it in forming a recovery fund to help prevent companies struggling with liquidity from going bust. 

Binance CEO Changpeng Zhao issued the call on his Twitter page after cryptocurrency exchange FTX filed for bankruptcy on Friday as customers pulled assets.

Zhao insisted that crypto is “not going away” as he called for more backers to pour money into the fund.

“To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify,” wrote Zhao.

“Also welcome other industry players with cash who wants to co-invest. Crypto is not going away. We are still here. Let’s rebuild,” he added.

Speaking during a session at the B20 conference in Bali, Indonesia, Zhao said that the crypto industry needed a regulatory framework to make the sector more resilient and therefore more viable.

“Crypto industry should increase transparency and sophistication. We do need some regulations in the crypto industry. But we should do this properly and in a stable way,” said Zhao. 

He added: “We need to work very closely with regulators all around the world to make this industry more robust.” 

Zhao, popularly known as CZ, also argued that the onus needed to be on businesses as much as regulators to ensure best practice is adhered to.

“The crypto industry collectively has a role to protect consumers. So it’s not just the regulators. Regulators have a role but it’s not 100 percent their responsibility. No one can protect a bad player. We should set strong standards for the industry,” he added. 

During the talk, Zhao said that blockchain technologies are changing the business environment all across the world, as it helps entrepreneurs to generate funds in a speedy manner. 

“Blockchain provides a very useful tool for entrepreneurs to raise money. Today, any entrepreneur with a decent background can raise $10 to $20 million in a matter of days. Doing the same thing with traditional VCs (venture capital) will take years,” he said. 

He also added that Indonesia’s tax regime on cryptocurrencies is not optimal, and licenses should be available more easily in the nation.