In a recent development, Binance CEO CZ expressed his support for a new cryptocurrency exchange called EDX, which boasts backing from prominent financial institutions including Citadel Securities, Fidelity Investments, and Charles Schwab. CZ took to Twitter, sharing a screenshot of a Wall Street Journal article about the exchange and commenting on its impeccable timing.
CZ Binance Supports New Crypto Exchange
Binance CEO CZ tweeted:
Impeccable timing. But the more the merrier.
Applauding developments in times of regulatory scrutinies, he believes more competition in the crypto space is a positive thing. Clearly as a crypto exchange CEO, he is not threatened by emerging players due to its broader vision.
Though CZ Binance has expressed relief over SEC disagreement settlement, SEC is still wary of crypto developments in the US. New Exchange EDX, a “noncustodial” platform. is set to offer trading exclusively in Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) initially.
The company plans to launch a clearing house later this year to settle trades. According to the Wall Street Journal, even after the clearing house is operational, EDX intends to rely on third-party banks and a crypto custodian to hold customer assets.
Timing Matters In Crypto World
This move comes as both Binance, including CZ Binance and Coinbase face legal action from the Securities and Exchange Commission (SEC). The regulatory scrutiny surrounding crypto exchanges has been primarily driven by SEC Chairman Gary Gensler’s assertion that most cryptocurrencies should be classified as securities falling under the agency’s jurisdiction.
Read More About SEC v. Binance Lawsuit
Recently, SEC Chair spoke about the need to protect investors, saying the crypto markets should not be allowed to harm them.
In addition to the backing from prominent US firms Citadel Securities and Fidelity Investments, EDX recently concluded a funding round with investors such as Miami International Holdings, DV Crypto, GTS, GSR Markets LTD, and HRT Technology.
Also Read: Fidelity Filing For Bitcoin ETF..
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