Bloomberg: Binance Hack Incident Sparks Crypto Industry Reflection, May Reintroduce Trading Delays and Other Wall Street Risk Control Mechanisms

Odaily News: The Binance hack incident is prompting the crypto industry to re-examine its long-held decentralization philosophy, as well as the transaction review, settlement delays, and fund intervention mechanisms in the traditional financial system.

As the crypto industry seeks to enter mainstream U.S. financial markets, some institutional investors are beginning to reconsider Wall Street's financial risk control mechanisms. In traditional finance, banks, payment networks, and clearing institutions are able to review suspicious transactions during fund transfers and, under certain circumstances, suspend the flow of funds.

Tian Zeng, CEO of crypto hedge fund Third Eye, said he hopes settlement times can be shortened from the traditional financial T+1 day to T+1 hour, and that by appropriately extending settlement times and adding review steps, hackers' ability to quickly move funds can be reduced. Joshua Lim, co-head of markets at FalconX, noted that as more institutions enter the crypto market, the client base is changing, and some institutions are no longer willing to fully accept the risks posed by irreversible transactions. As the crypto industry further integrates with traditional finance, how to strike a balance among transaction efficiency, decentralization, and fund security will become an issue the industry must confront. (Bloomberg)