The CEO of Binance, CZ, stated his support for EDX, a new digital currency exchange that has the backing of well-known financial companies like Fidelity Investments, Charles Schwab and Citadel Securities.
CZ tweeted a screenshot of an item from the Wall Street Journal about the exchange and remarked on its good timing.
CZ praises advances in times of regulatory scrutiny and thinks that increased competition in the cryptocurrency market is a good thing. The CEO of a crypto exchange is obviously not frightened by new participants because of its larger vision.
Despite CZ Binance’s expression of relief over the resolution of the SEC issue, the SEC continues to be sceptical about progress in the US crypto market.
Initially, the “noncustodial” platform New Exchange EDX will only allow trading in the cryptocurrencies Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
In order to settle trades, the organisation intends to open a clearing house later this year. Even after the clearing house is operating, the Wall Street Journal reports that EDX plans to rely on third-party institutions and a cryptocurrency custodian to keep customer funds.
This step was taken after the Securities and Exchange Commission (SEC) attempted legal action against Coinbase, CZ Binance, and Binance.
Gary Gensler, the chairman of the Securities and Exchange Commission, claimed that the majority of digital currencies should be considered securities subject to the agency’s regulation, which has led to more scrutiny on cryptocurrency exchanges.
The SEC Chair recently discussed the need to protect investors and said that the cryptocurrency markets shouldn’t be permitted to hurt investors.
EDX has completed an investment round with investors including DV Crypto, Miami International Holdings, GSR Markets LTD, GTS and HRT Technology along with the support of renowned US companies Citadel Securities and Fidelity Investments.
