The resignation of CZ as CEO of Binance, following the ongoing SEC investigation, has somewhat shocked the cryptocurrency market, which has clearly recovered in recent weeks, marking a leap backwards, albeit not too significant.
In fact, on November 21, the United States Department of Justice announced that CZ and Binance had reached a plea agreement in relation to criminal charges of violation of the United States Bank Secrecy Act. On the same day, CZ announced his resignation as CEO of the exchange and posted a $175 million bond in a US district court to be released, although CZ's sentencing hearing is scheduled for February 23 2024 and could risk a severe sentence.
The SEC wants to impose certain and transparent rules for the sector, a warning to all CEXs who want to operate in the sector outside of regulation. The affair will therefore mark a certain division between exchanges: CEXs will have to follow the rules to continue operating in the sector, DEXs will have to ensure more secure and unassailable algorithms.
Those who have always defined Bitcoin and cryptocurrencies as decentralized assets must now take note of the change underway. We will probably see a dual market in the future: the regulated one followed by large investors and the decentralized one for users who are most rebellious to the system.
The possible failure of the largest exchange in the crypto sector has frightened many investors and in the last few hours there has been a large amount of money leaving Binance, over half a billion dollars, with negative effects on the market, in fact we have seen the markecap drop of a few trillion dollars.
The new CEO of Binance Richard Teng declared that the exchange has solid foundations, there are no risks to economic stability and the more respectful attitude to the rules will guarantee the exchange itself to still be a point of reference for the the entire sector.
Posted Using InLeo Alpha
