Bybit puts crypto transparency in the spotlight as news of FTX liquidity crunch raises concerns about the crypto industry

Yesterday, Binance announced it was acquiring the crypto exchange FTX, saving distressed crypto exchange from bankruptcy after a significant liquidity crunch. The news quickly ripples the entire crypto sector causing the world’s most popular cryptocurrency bitcoin to plunge by more than $2,000.

The recent market concerns further highlight the need for the entire crypto industry to step up and be transparent with their customers. Now, one crypto exchange is doing just that.

Bybit, the world’s third most visited crypto exchange, has said that recent market volatility is a wake-up call for the industry and that customer confidence and market stability should be a top priority for every exchange. Bybit also highlighted that the recent uncertainty had shone the spotlight on fund safety, custodianship, and transparency, and the industry would have to tackle this head-on.

“The entire sector has a duty and obligation to do better by our customers,” said Ben Zhou, Bybit 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 towards customer 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.”

Bybit commended industry moves to provide greater reassurance for customers as they navigate a volatile market. Bybit has long advocated for an industry-wide standard on transparency that would help to provide greater trust and credibility for the industry and confidence for customers and regulators.

The company also said that despite its trust and security credentials, it expected to establish a Proof of Reserve program in the near future – as an example of best practice for other exchanges and a symbol of its ongoing commitment to open and transparent trading.

Looking to the future Zhou added. “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.”

Founded in March 2018, Bybit offers a professional crypto exchange platform where crypto traders can find an ultra-fast matching engine, excellent customer service, and multilingual community support. Currently, Bybit is now the world’s third most visited cryptocurrency exchange with more than 5 million registered users. The ByBit crypto trading exchange offers a professional platform where crypto traders can find an ultra-fast matching engine, excellent customer service, and multilingual community support.