Binance CEO says crypto 'will be fine' and announces industry recovery fund

The CEO of the largest online speech for trading cryptocurrency said Wednesday that he's establishing a betterment money to assistance radical successful the manufacture portion saying the assemblage "will beryllium fine."

"We privation the beardown manufacture players contiguous to support the bully manufacture players who mightiness conscionable beryllium wounded abbreviated term," Binance CEO Changpeng Zhao said during an interrogation with CNBC's Dan Murphy astatine Abu Dhabi Finance Week.

"That's not to accidental we tin prevention everybody. If a task is mismanaged connected aggregate fronts we won't beryllium capable to assistance them anyway."

Zhao said cryptocurrency had "shown utmost resilience," suggesting helium didn't expect caller turbulence successful the manufacture to origin semipermanent damage. He did not specify an nonstop fig for the size of the betterment fund.

His comments travel conscionable a week aft Binance backed retired of a deal to rescue rival speech FTX, which declared bankruptcy Friday.

The terms of bitcoin dropped beneath $17,000 for the archetypal clip since 2020 and determination are concerns the alleged "crypto contagion" could pb to the downfall of different large manufacture names, specified arsenic Crypto.com. The company's CEO denied the claims and said the level was "performing concern arsenic usual." 

"Short word there's a batch of symptom but agelong word it's accelerating the efforts we're making to marque this manufacture healthier," Zhao said.

The CEO connected Monday said Binance had seen a "slight summation successful withdrawals" successful the past week, but helium said this was successful enactment with different dips successful the market. 

"Whenever prices drop, we spot an uptick successful withdrawals," Zhao said. "That's rather normal."

Zhao said helium wants to signifier an enactment that could "establish champion practices" crossed the industry, which is known for its deficiency of regulation. 

"Regulations request to beryllium adapted for this industry," Zhao said. "Regulation won't hole each of this, it volition trim it. It's important but we've got to person the close expectations," helium added.

Zhao reflected connected however determination were elements of accepted concern that could assistance the cryptocurrency marketplace to go much regulated and amended trusted, but practices would request to beryllium adapted to beryllium acceptable for purpose.

The "transparency" and "audit" aspects of accepted concern could payment the crypto industry, but determination are "subtle but precise important" differences that would request to beryllium made, according to the CEO.

"Too galore regulators are much of a accepted mindset, they request to get a crypto mindset," helium said

The comments echo those made by Ripple CEO Brad Garlinghouse, who said the thought that crypto is "not regulated is overstated," but that "transparency builds trust."

"Crypto has ne'er conscionable been sunshine and roses and arsenic an industry, it needs to mature," Garlinghouse said connected CNBC's "Squawk Box Europe" Wednesday.

Economist Nouriel Roubini took a antithetic enactment successful his Abu Dhabi Finance Week interrogation and described crypto and immoderate of its large players arsenic an "ecosystem that is wholly corrupt."

The New York University prof said determination were "seven Cs of crypto": "Concealed, corrupt, crooks, criminals, con men, carnival barkers," and finally, Changpeng Zhao himself.

— CNBC's Jenni Reid and Ryan Browne contributed to this report.