What will Binance look like after the CZ era?

How will Binance evolve once the CZ era ends?

Author: Jason Nelson, Decrypt; Translator: Song Xue, LianGuai

After Binance CEO Changpeng Zhao (CZ) agreed to plead guilty and stepped down as the CEO of the world’s largest cryptocurrency exchange, the future of his company, founded in 2017, sparked intense debate in the crypto world.

For the tech or crypto industry, idol worship is nothing new, with figures like Tesla CEO Elon Musk amassing dozens of followers and being able to move markets with a single tweet. As for CZ, he has been leading the online conversation around cryptocurrencies, including creating the shorthand “4” for so-called misinformation.

On Tuesday, after a years-long investigation led by the U.S. Department of Justice, Changpeng Zhao agreed to pay a $4.3 billion fine and admitted to money laundering charges.

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Atlanta’s chief operating officer, Greg Moritz, said, “CZ’s resignation from Binance is a strong signal of maturity in the crypto market, contrary to the Wild West stereotype, where those operating outside certain parameters will now be held accountable,” AltTab Capital, a cryptocurrency hedge fund, told Decrypt. “More importantly, the successor to Binance will demonstrate that the largest crypto business has a reliable continuity plan and is not reliant on any one person.”

Moritz added, “CZ may have been the person to grow Binance into a behemoth, but it can thrive under new leadership.”

However, despite CZ’s impending resignation and the appointment of the new CEO, Richard Teng, Amberdata research director Chris Martin does not believe the founder will go far.

“I think overall, in the long run, this is positive for Binance and the entire industry,” Martin said. “Settling with the Department of Justice paves the way for Binance’s ultimate rebuilding in the U.S., while settling with the CFTC indicates a harmonious relationship between Binance and the Commodity Futures Trading Commission.”

Staying active in the U.S. may be easier said than done, as one of the stipulations in the Department of Justice’s case against Binance and CZ is an order for the exchange to completely withdraw from the U.S.

“As for CZ, I bet he will still be involved in most of the day-to-day work. He has not given up ownership of the exchange, so he will continue to be a major figure—I bet his influence on Twitter will be even greater than before,” Martin predicted.

Martin said the silver lining in the ongoing SEC case is that Binance may band together with Coinbase and Kraken to resist what they see as harsh regulatory enforcement.

What happens next after the appointment of the new CEO?

Steven Lubka, Director of Private Clients at Swan Bitcoin, said, “The next goal is to make this crypto giant comply with regulations, which could lead to loss of customers.”

Lubka said, “The Ministry of Justice will monitor their books in the next 2 to 3 years. If any non-compliant situations are found, the company will be asked to comply with the regulations.” “Binance may continue to operate in the short and long term. However, protocols, compliance procedures, and assets may undergo changes.”

“I believe a large portion of Binance users appreciate the platform’s relaxed compliance,” he concluded.

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