Binance CEO Changpeng Zhao explained 6 requirements for crypto exchanges to be secure.
CZ continued to provide various advice to the industry following the FTX collapse.
Changpeng Zhao Listed Six Requirements
Binance CEO explained what a crypto exchange needs to be in order to be safe.
“In light of what happened last week, I felt compelled to extend these principles with the six most important requirements that Binance and all other centralized exchanges must adopt to ensure the trust of our users. We can’t let a few bad guys tarnish the reputation of this industry, which is still in its infancy.”
Making the statement through a blog post, CZ set the following principles:
a) Avoid risk with user funds
b) Never use native tokens as collateral
c) Share living proofs of assets
d) Keep reserves strong
f) Avoid excessive leverage
g) Strengthen security protocols
In the last part of the statement, Changpeng Zhao appealed to the industry:
“We urge all other centralized exchanges to adopt these recommendations. Because we all have a responsibility to people who decide to invest their hard-earned money in us. It is our responsibility to prove to regulators and the community that a few bad actors are not emblematic of this industry.”
