A member of the UK parliament said their lawmakers are not convinced about what role Binance played in the collapse of FTX. The U.K’s Parliamentary Treasury Committee had asked Binance for internal correspondence on the fallout of Sam Bankman-Fried’s FTX.
However, Changpeng Zhao’s company only sent back news articles. Alison Thewliss, U.K’s Treasury Committee member, said it doesn’t really give the real background detail. She pointed out that the committee will ask more questions to get to the details of what really happened. The Scottish National Party MP for Glasgow believes there are wider implications for this collapse and for the crypto sector as a whole.
The Treasury Committee wants to review Binance’s internal records, including the decision to unload its holding of FTT – FTX’s native token. Binance denied having any deliberate plan to sink FTX. In its documentation to the U.K lawmakers, the platform included a timeline of events and suggested that the causes of the collapse were financial irregularities and possible fraud.
With UK prime minister Rishi Sunak wanting the country to be a crypto hub, the government is trying to come up with ways to regulate the emerging industry; its Financial Services and Markets bill will empower regulators.