), for crypto asset trading and custody service. In addition, the European Union finalized the crypto asset markets legislation MiCA, which has the potential to guide global crypto regulations. This development, which resonated throughout the market, was seen as an important step in the years-long regulatory debate.
The first reaction came from FTX's biggest competitor Binance, with the exchange's CEO, Changpeng Zhao, announcing that they had learned from Terra and would divest their FTT holdings. This development triggered the acceleration of FTT sales in the market. At the same time, as mass fund exit requests from FTX started to increase, the exchange had to suspend withdrawal requests. As it would later be revealed, Alameda had taken FTX customer funds for their own use for some time.
FTX's rapid collapse caused panic among crypto investors, and crypto asset withdrawals from centralized exchanges have skyrocketed since November. Crypto exchanges began to publish their assets one by one, adopting the proof-of-reserves principle in an effort to regain user trust. However, the sudden termination of cooperation with crypto companies by the auditing firms that determine the reserves of the exchanges has emerged as a new negative.