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Binance Dismisses Parallels With Bankrupt FTX, Says Its Assets Are ”Backed One-To-One”

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Binance Remains Financially Strong, No Parallels to FTX, Says Regional Head, Richard Teng
Binance Remains Financially Strong, No Parallels to FTX, Says Regional Head, Richard Teng

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Binance dismissed parallels between itself and bankrupt crypto exchange FTX and said all its asset are “backed one-to-one.”

Despite facing lawsuits, heightened regulatory scrutiny and challenges in some regions, Binance remains financially stable and is not comparable to the now-bankrupt FTX head of regional markets Richard Teng told CoinTelegraph in an interview.

 “There were different rumours and FUD after FTX,” he said. “People tried to associate us, which is totally untrue. Our assets are backed one-to-one.”

The remarks come just days after Binance CEO Changpeng Zhao lashed out at negative news and rumours about the world’s biggest cryptocurrency exchange, dismissing them as “FUD” and providing an assurance that the company has no liquidity issues.

The comments also follow an exodus of top executives from the firm that gathered pace last week with four departures, bringing the total to 10 since July. Lawsuits brought against the firm, its exits from some markets and product closures also are behind the ‘FUD,’ Zhao said.

Binance Embraces Scrutiny

Teng attributed the increased scrutiny around Binance’s operations to its rapid growth, telling CoinTelegraph that “all this scrutiny will come from being the largest — scrutiny from regulators, scrutiny from the media — and we welcome the scrutiny.”

Teng said there was no decision yet on whether it would exit the Russia market, as has been reported, and that it adheres to international norms and standards in regards to sanctioned entities and individuals.

“On our plans for Russia, we have stated very clearly in the last couple of weeks that all options are on the table,” he said in the interview. “We continue to explore what we need to do for that particular franchise going forward.”

Teng Optimistic About MiCA Regulations

Teng welcomed the evolving regulatory frameworks in various regions, particularly highlighting the European Union’s Markets in Crypto-Assets (MiCA) regulation. He said that standardized rules could simplify compliance for global platforms like Binance and expressed hope for harmonized standards, the story said. 

He said MiCA is a positive step towards creating consistent regulatory guidelines for the cryptocurrency industry globally and added that it will ultimately provide clarity and coherence for exchanges and participants. 

 

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