Binance is forming an industry consortium to protect cryptocurrency.

According to reports, Binance, the largest cryptocurrency exchange in the world, is working with a group of cryptocurrency companies to restore faith in the industry. The move intends to interact with upcoming laws and restore business trust, according to a source who first broke the news to CoinDesk.

Several businesses have reportedly already joined up, according to the report. The businesses span the whole cryptocurrency sector and include exchanges, blockchain analytics companies, and independent projects. No one has been identified as a participant thus far. BeInCrypto was unable to officially verify the consortium's validity as of the time of publication.

According to the insider, Binance still wouldn't lead the company. To maintain community consistency, it will “be run in as decentralized a manner as you possibly can across many different initiatives.”

“[The creation of the group is] also to ensure theres a mechanism in place to call out shortcomings and bad behavior in the industry, and help avoid larger contagion issues.”

Binance has made numerous attempts to establish itself as the foremost reliable player in the cryptocurrency sector. Changpeng Zhao (or CZ), the company's CEO and founder, has frequently urged appropriate conduct recently.

He said that the sector should “keep things safe, let's be highly dependable, and cooperate closely with regulators” during his speech in Davos last month. To acquire the trust of its users, Crypto has to “consistently demonstrate we are reliable [and that] we do what we claim.”

Binance made an effort to establish itself as the lender-of-last option with an industry rehabilitation fund following the abrupt collapse of FTX. At that period, CZ stated that it would “help projects that are otherwise strong but facing a liquidity crisis.”

A Full Audit Will Take Some Time

A thorough examination of their finances is not likely to occur anytime soon, according to Leon Foong, the head of Binance's Asia-Pacific division. He ascribed this to absence of crypto knowledge in the accounting sector. He stated in a Bloomberg interview. Because there is a learning experience, “it shows you the limitations of the more traditional industries,” he said that first it's not their field of expertise. Second, if they make a mistake, there will be a significant amount of attention.

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

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