Crypto exchange Bybit believes that digital asset trading platforms should focus on customer confidence and market stability.
Bybit, the world’s third most visited crypto exchange, believes that the recent market volatility is a wake-up call for the broader cryptocurrency market.
The crypto market has lost roughly 10% of its value since the start of the week. The struggles began after FTX faced selling pressure from the market, with Binance subsequently announcing that it would acquire its rival exchange.
While commenting on the current market issues, Bybit said the events of the last few days are a wake-up call for the industry, and that customer confidence and market stability should be top priority for every exchange.
The exchange added that the recent uncertainty had shone the spotlight on fund safety, custodianship, and transparency, and the industry would have to tackle this head-on.
Ben Zhou, Bybit co-founder and CEO, commented that;
“The entire sector has a duty and obligation to do better by our customers. 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 pointed out that Bybit takes care of its customer funds. He said;
“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 wants crypto exchanges to provide greater reassurance for customers as they navigate a volatile market. The crypto exchange 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.
According to the crypto exchange, it intends to establish a Proof of Reserve programme in the near future despite its trust and security credentials. Bybit intends for this to serve as an example of best practices for other exchanges and a symbol of its ongoing commitment to open and transparent trading.
Zhou concluded that;
“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.”
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