The FTX wallet now supports Binance Coin (BNB) and BUSD—Binance’s minted stablecoin.
It comes as a relief for FTX traders and for BNB investors who may wish to jump in and out of traders without shuffling several dApps to access their coins.
Even as the announcement permeated through the crypto scene, there was no official communication from FTX—one of the largest cryptocurrency exchanges launched by Sam Bankman Fried in 2017.
All the CEO did was confirm as per a tweet earlier this month.
Gleaning from the tweet, FTX wallet supports the withdrawals of Binance Smart Chain (BSC) BEP-20 BUSD tokens. Deposits, he added, will soon be activated.
The number of coins a wallet supports is critical, even determining the level of customer onboarding of any exchange. The FTX wallet, which is coupled with the cryptocurrency exchange, is custodial.
As such, the ramp will take it as their initiative to offer the best security and support on-demand tokens complying with various standards in various smart contracting platforms like Ethereum, Solana, and the Binance Smart Chain (BSC).
FTX Exchange Works Closely with Regulators
Even as FTX constantly seeks to improve customer experience by rolling out a smooth, easy-to-use interface and offering support for numerous coins/tokens, their services won’t be accessed by crypto traders in the United States.
The entrepreneur, Sam, revealed that the decision to wall off traders, not only from the United States but other jurisdictions like China, was because of regulatory restrictions.
Increasingly, governments have been zooming in on cryptocurrency exchanges in some instances banning them altogether. The rising regulatory pressure was seen recently when FTX and Binance were both forced to reduce their leverage offerings from 100X to a maximum of 20X.
At the same time, cryptocurrency exchanges are now forced to comply with existing KYC and AML rules. Regulators and law enforcers contend that the objective is to curb money laundering and other illegalities. They assert that this activity is being funneled through cryptocurrency exchanges, most of which have instituted loose laws preventing this vice.
Chiming in, Sam earlier said it would take between three to five years to provide clear regulatory clarity for cryptocurrency businesses wishing to operate within their jurisdiction. Even so, as this pans out, the CEO added that FTX aims to be on top of the ever-evolving regulatory landscape, ensuring they remain compliant.
Concurrently, Sam wishes that governments would engage crypto businesses and operators as he would want to be part of the discussion building out this new regime. At present, the exchange continues to apply for licenses in various regions of operations. On a personal level, the CEO also revealed that he spends five hours a day on regulations to licensing, and everything in between.
FTX and Binance Relation
FTX Wallet’s support of BNB and BEP-20 BNB was expected considering their previous dalliance. In early July 2021, FTX announced that they had received a strategic investment from Binance—becoming the first outside investor, when it raised $900 million from over 60 investors, thrusting FTX’s valuation to $18 billion.
Preceding this was FTX’s support of BNB in the spot and futures market where the third-most valuable coin was also used as collateral within FTX’s ecosystem. At the same time, Alameda Research had partnered with Binance—the world’s largest exchange by client count—to provide liquidity across Binance’s suite of products. This, FTX said, underscored “their efforts to continue to work together on the Binance and FTX markets.”
Late July 2021, however, Binance exited its early investment. Changpeng Zhao (CZ) said the decision to exit was “part of a normal investment cycle” and that there was nothing new in that. On the other hand, Sam said by Binance’s exit, the exchange would have more flexibility, further insinuating that Binance might be under regulators’ lens. Still, CZ is adamant, saying Binance plays by the rules. If anything, the ramp could be one of the most compliant in the crypto space.
FTX Set Sight on NFTs, Partners with Florida-based Dolphin Entertainment
Amid the regulatory jumble and breakups, FTX is also setting its sights on NFTs. The crypto sub-sector is expected to command billions in valuation in the next few years.
In early August, the exchange said it had stitched up a partnership with Florida-based Dolphin Entertainment to create a gaming-centric NFT marketplace. FTX will leverage the film production company’s ability to access content and intellectual property (IP) and its experience in the entertainment industry. Dolphin Entertainment will ride on FTX’s services and technical development to anchor the marketplace.
Out of this, FTX also signed a seven-year sponsorship deal with the LCS eSports league for Riot Games’ League of Legends (LoL) and will provide support for the LCS Most Improved Player Award.