Media: Binance forms a group of lobbyists to restore confidence in the crypto industry

The largest cryptocurrency exchange has begun to form a consortium of crypto companies whose task will be to restore confidence in the industry after the collapse of the FTX exchange.

The consortium includes some cryptocurrency projects, trading platforms and blockchain analytics companies. Who exactly, Binance does not disclose. The group members are going to interact with legislators and regulators, lobbying for a softening of attitudes towards the crypto industry.

Now, many officials around the world are calling digital assets a tool for money laundering and other illegal activities. And the FTX fiasco and the bankruptcy of several crypto lenders last year provoked even more distrust from regulators. Binance strives to prove to the authorities of different countries that cryptocurrency companies are taking active measures to combat crime, and the transparent nature of open blockchains allows suspicious transactions to be tracked.

A source familiar with the situation said that the consortium will not be managed by the Binance exchange, but will become as decentralized as possible. In addition to interacting with agencies, the task force is going to identify suspicious activity and shortcomings in order to prevent a further streak of bankruptcies.

Last year, during a congressional hearing, Cardano founder Charles Hoskinson argued that cryptocurrencies could self-regulate without the involvement of the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC). However, according to a 2020 survey by Britain’s Royal United Defense Research Institute (RUSI), banks and regulators doubt the industry is capable of combating money laundering through cryptocurrencies on its own.