STORY: The head of Binance has called for more regulation of the cryptocurrency industry.

Changpeng Zhao's comments come as the fallout grows from the collapse of rival firm FTX.

The cryptocurrency exchange filed for bankruptcy on Friday, after a week of seeing customers pull assets and Binance abandoned a rescue offer.

Zhao told a gathering of G20 leaders at the summit in Bali that there were bad players in the industry.

“So, but the regulators do have a role. We do need slightly more, we do need to increase the clarity of regulations, and the sophistication of regulations in the crypto space.”

“So, over the last week, there’s so much turmoil in our industry. But I want everybody to understand that that’s not reflective of everything in the industry. The industry goes through ups and downs. We have one, or maybe even more bad players in the industry, but the is still growing, so we’re still building.”

In a statement on Sunday, the Royal Bahamas Police said they were looking into whether any "criminal misconduct occurred" at FTX.

That's after Reuters on Friday learned that at least $1 billion of customer funds had vanished from the platform.

Reuters sources also said that the founder of FTX, Sam Bankman-Fried, who lives resides in the Bahamas, had transferred $10 billion of customer funds to his trading company, Alameda Research.

While Bankman-Fried was once seen as the poster child of crypto's successes, now he's viewed as the protagonist of the industry's biggest crash.

The exchange's sudden collapse has also eroded confidence in the digital asset market as a whole.

Bitcoin was trading at around $16,000 on Monday, having shed almost 22% last week.