Opinion: What happened with Binance was done in order to take control of the company, and in general to “recover” the market
Experts, including community members and officials, assessed the consequences of the deal between the Binance crypto exchange and the US authorities. We would like to remind the readers that earlier it became known that the founder of the exchange, Changpeng Zhao, pleaded guilty for the company and himself. As a result, the platform will pay a fine for violating the law exceeding $4 billion.
“The complaints against the exchange were mostly economic and political, and no one focused attention directly on the work of the platform itself. I dare to suggest that this act was done in order to take control of Binance, and in general to “recover” the market. It is no coincidence that it was Richard Teng, who came from regulatory circles, who was appointed as the new CEO,” says crypto expert Taisiya Romanova.
US Treasury Secretary Janet Yellen said that several departments have been investigating Binance over the past years. According to her, the actions taken by the authorities against exchanges are not aimed at stopping cryptocurrency activities, but must comply with the law.
Coinbase CEO Brian Armstrong is confident that, unlike his company, Binance’s initial focus was on ignoring the rules. The entrepreneur hinted that his platform would not have similar problems.
“Since the founding of Coinbase back in 2012 we have taken a long-term view. I knew we needed to embrace compliance to become a generational company that stood the test of time. We got the licenses, hired the compliance and legal teams, and made it clear our brand was about trust with our customers and following the rules,” the Coinbase CEO wrote.
Experts from JPMorgan consider the deal between Binance and the US authorities to be a positive development, as it will eliminate the systemic threat to the entire industry due to the theoretical collapse of the platform. And Matrixport analyst Markus Thielen believes that a relative compromise between Changpeng Zhao and the US government will strengthen confidence in the cryptocurrency industry.
“The expectations for a spot bitcoin ETF might have increased to 100% as the industry will be forced to follow the rules that TradFi firms must follow,” Thielen wrote. According to him, tighter regulation of cryptocurrencies will strengthen the case for institutional adoption of Bitcoin, and the first cryptocurrency could become a safe haven for many large investors.
According to DefiLlama, within 24 hours, the outflow of funds on Binance exceeded $1 billion, the net outflow from the platform in 7 days reached $703 million. What do you think about this?