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12° Nicosia,
25 July, 2024
 

Binance's Zhao, steps down as CEO

Richard Teng to take charge

Newsroom

In a significant development for the cryptocurrency world, Changpeng Zhao, better known as CZ, has announced his resignation as the chief executive officer of Binance.

This decision comes as the crypto giant grapples with a $4.3 billion settlement to address alleged violations of U.S. anti-money laundering laws.

In an exclusive interview with Knews in 2022, Zhao shed light on Binance's overwhelming dominance in the global crypto trading arena, accounting for approximately 70-75% of the total trading volume. Despite facing regulatory challenges, Binance recently obtained a cryptocurrency exchange license in Cyprus, prompting Zhao to express gratitude for the support received from local regulators and the government.

The resignation of Zhao follows the recent FTX scandal, which sent shockwaves through the cryptocurrency industry. Zhao acknowledged the far-reaching impact of the FTX bankruptcy on industry confidence, with regulators intensifying scrutiny.

He expressed concerns about the potential consequences, anticipating that new licenses could become harder to obtain, and existing licenses may incur higher costs and increased maintenance efforts.

Discussing Binance's connection to the FTX scandal, Zhao disclosed that, despite being the largest holder of FTT tokens, the financial damage is considered manageable.

He emphasized the importance of thoughtful regulation that protects consumers while fostering innovation.

Zhao suggested that regulators are likely to focus more on user asset protection and preventing the mishandling of customer funds in the aftermath of the FTX incident.

Addressing broader misconceptions about cryptocurrencies, Zhao outlined their potential beyond being a method of payment.

Drawing parallels to the early days of the internet, he envisions a transformative future for cryptocurrencies in global transactions and business models.

Despite being in the early stages, Zhao expressed optimism about building tools for people to use and benefit from cryptocurrencies.

Zhao's resignation marks a pivotal moment for Binance, raising questions about the company's trajectory and leadership. Richard Teng, a longtime Binance executive, is set to take over as Zhao steps down.

The crypto community is closely watching to discern the implications of this leadership transition amidst the complex regulatory landscape.

As the cryptocurrency industry navigates these challenges, Zhao's departure adds a new layer of uncertainty to the future of Binance, leaving both the company and the broader crypto market at a crossroads.

[With information sourced from Reuters and Knews]

TAGS
Cyprus  |  crypto  |  CEO  |  finance  |  US

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