![]() ![]() 10, Binance published an online article explaining how zk-SNARKs technologies would operate within its proof of reserves (PoR) verification system, saying that breaking through their safeguards "would require an unfeasible amount of computational power." The new PoR system's goal is to restore trust with the public by proving that Binance backs all user funds at a 1:1 ratio, plus additional reserves. "We encourage all CEXs to make use of this solution, and the whole community to share feedback so we continue to improve it further," the paper reads. Binance also asked all CEXs to conduct proof of custody reserves to increase transparency so users can "ensure their assets are collateralized, exist on the blockchain and are under the control of the exchange at the reporting date." The policy paper used the example of zk-SNARKs technologies used alongside Merkle tree proofs as a verification method that offers both privacy and data integrity. In the policy paper, Binance stated that it is critical for crypto companies to enable users to verify any and all assets held by a centralized exchange (CEX) "through proof of reserves or similar disclosures," also arguing that the verification process needs to utilize technology such as zk-SNARKs that cannot be fabricated or manipulated, all while updating them regularly. Securities and Exchange Commission (SEC) and just two days after a Senate Banking Committee hearing that focused on how to move forward with crypto regulation. Winning back policymakers, regulators and the community’s trust will require putting risk management, security and transparency front and center." With this in mind, all players in the digital assets space have a fundamental responsibility and part to play to prove that a few bad actors are not emblematic of the industry. Users will demand more from centralized exchanges, and the exchanges must rise to the occasion. "2022 was a historic year for the crypto industry," the paper reads. "This was a watershed moment where rebuilding user and regulator trust is critical for the future of the whole ecosystem. customers,” the regulators added.Binance, the world's largest crypto exchange by volume, stated its belief that prioritizing risk management, transparency, disclosures and security is crucial to restoring trust in the industry, which suffered through a turbulent year, in a policy paper titled " Building Trust in the Crypto Ecosystem." even though purportedly does not deal with U.S. The terms of use Voyager customers must sign “may even effectively permit to act in the U.S. “While Binance.US has affirmatively represented to its customers that it was working on getting licensed in Texas, Binance.US has never applied for a license with the SSB (State Securities Board) and, after a year, abandoned its license application with the DOB (Department of Banking) after failing to submit sufficient financial information,” the court filing said. Securities and Exchange Commission earlier this month and agree to end staking-as-a-service in the country. His comments follow enforcement action against crypto exchange Kraken, which had to pay a multimillion-dollar fine to the U.S. "Binance.US’ staking program differs from traditional crypto staking and appears to constitute an illegal securities offering,” Joe Rotunda, director of enforcement at the Texas State Securities Board, said in a statement. Bankruptcy Court for the Southern District of New York, also detailed concerns over Binance’s business model. The document, which was filed in the U.S. The Binance.US deal, which is worth $1.02 billion, should also be quashed because customers weren’t warned personal data could be transferred to underregulated overseas jurisdictions, the filing also said. Voyager lawyers have said the Binance.US deal has significant creditor support, but the Texas filing says they weren’t sufficiently warned about the risks of Alameda, the trading arm of collapsed crypto exchange FTX, successfully clawing back loan repayments made before its own bankruptcy. “If Alameda is successful in proving its administrative expense claim … recovery could be decreased from 51% to 24%-26% – an amount much lower than what the general unsecured claimants are estimated to receive in a Chapter 7 liquidation,” said the court filing, which was also backed by securities regulators from New Jersey. The filing by the Texas banking and securities agencies said that Voyager’s creditors might be better off if the company simply liquidated assets and warned that would-be buyer Binance.US may be illegally offering securities through its staking program. The benefits to creditors from an offer from Binance.US to buy bankrupt crypto lender Voyager Digital hinge on a $445 million loan claim by Alameda Research, making the deal potentially not worth bothering with, Texas regulators said in a Friday court filing. ![]()
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