British authorities are conducting investigations to understand what led to the collapse of the FTX exchange. To do this, British parliamentary committee members asked Binance to provide some internal documents. It seems that they suspect that the cryptocurrency exchange is not transparently cooperating with them. Bloomberg reported the information on November 17, 2022.
Binance allegedly provided inadequate evidence
According to a Bloomberg article, UK lawmakers were not convinced by Binance’s documents regarding the FTX collapse. It appears that the CZ exchange has disappointed some of the UK legislators who intervened in the inquiry. Treasury Board member Alison Thewliss said she is dissatisfied with Binance’s cooperation in investigation🇧🇷
🇧🇷It doesn’t really give us the actual details of the context.“, she explained. Then she added:I’m sure the committee will be asking more questions to get the details of what happened here, as there are wider implications for this meltdown and the crypto industry as a whole.🇧🇷
You should know that Binance had to provide internal records describing the possible consequences of the market’s failure to help FTX. Among the documents handed over by the exchange to the UK committee is a list of news articles that show a timeline of the FTX collapse.
CZ’s corporate behavior would affect upcoming regulations
Alison Thewliss explained that Binance’s lack of transparency would affect the investigation standing commission. According to her, it may even influence the recommendations that the commission will make to the British government for the regulation of cryptos.
Thewliss clarified that the exchange may “hide behind some degree of commercial confidentiality about it“. However, according to her, now is not the time. “Given the scale of things this is really not acceptable.,” she pointed out.
At the same time, President Harriett Baldwin explained: “We don’t have much ability to push for more than we get“. Indeed, it turned out that the business of the bankrupt exchange FTX extended far beyond the UK.
Binance was exploring the possibility of acquiring its rival FTX to help it deal with financial difficulties. But, the company finally decided not to try anything, leaving the FTX platform bankrupt. Now, UK authorities are looking into the matter, but Binance is not being very cooperative.
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Far from dampening my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its various uses and relay with my pen the information relating to this ecosystem.