- The liquidity problem experienced by one of the largest exchanges in the crypto industry has mobilized other exchanges for transparency.
- Bybit, which wants to develop solutions despite the skepticism of investors in the sector, advocates the need for a global standard based on fund security and transparency.
- Bybit plans to create a Proof of Reserve program in the near future.
The volatility experienced in the crypto market, especially in the last 2 days, reveals why the need for transparency in the sector is vital. Bybit, a top 5 cryptocurrency exchange in the world, said that market stability and customer trust should be the top priority for every exchange. It was emphasized by Bybit that the crypto industry should deal with the issues of fund storage, security, and lack of transparency and that there should be no uncertainty.
Bybit focuses on providing assurance for clients trading in the volatile market. Bybit argues that there should be a global standard for greater reliability and trust for the crypto ecosystem and greater transparency to help ensure trust for regulators and customers.
Proof of Reserve
Although Bybit has good references on security and trust, it plans to establish a Proof of Reserve program in the near future, both to set an example for other exchanges and to ensure that customers continue to trade transparently and with confidence. PoR can include cold crypto wallets where Bybit holds crypto assets and fiat money held in banks.
Quotes from the Manager
“The entire sector has a duty and obligation to do better by our customers,” said Ben Zhou, Bybit’s co-founder, and CEO. “Bybit has always been a leader in this area and provides one of the highest levels of fund safety and security in the industry – But we can also do better.”
Zhou also stressed Bybit’s stance against client funds.
“Bybit is NOT a bank, we are a custodian of our customers’ funds. We do not use those funds for any other purpose! Bybit can guarantee that all clients assets are stored in one-to-one liquidity held in custody – available in full, on request, and without delay if requested.”
“We are here for the long run and place a strong emphasis on staying focused and strict processes, policies, compliance, and our overarching risk management strategy. As we navigate the bear market, we are building out our products and frontline staff – preparing for a fast start when the market turns.”
Adnan is a crypto enthusiast who is always keeping an eye on the latest developments in the crypto ecosystem. He is an environmental engineer working on his MBA and has been following innovations in FinTech for several years. Adnan produces written content to review crypto projects and support the crypto community.