Sunset of Binance. Or not yet?

A few months ago, I wrote that the American administration had no intention of destroying Binance. They could have done so without much difficulty, it is enough to put into full force the tools of legal prosecution and sanctions. Another path was chosen: constant legal pressure in all directions and personal interaction with the top managers of the company.

This strategy led to real results: Changpeng Zhao, CEO of Binance agreed to fulfill an American ultimatum, resign and pay huge fines.

It’s called good work, however relevant.

Let’s admit that Binance was the most independent of the major crypto exchanges. It was quite loyal to the users from the point of view of KYC-policy, in words agreed, and in fact ignored American sanctions. Moreover, they did not listen to informal advice and recommendations.

In today’s world, it is dangerous to ignore the wishes of super-Powers. Changpeng Zhao has shown himself to be a man of character, but he also failed to resist the consolidated attack of the "golden billion" countries.

Since the beginning of the fighting, Binance has lost the American market, a significant portion of revenue and many top managers. Zhao has virtually no resources left for resistance.

In fact, the US gained control of the last relatively independent crypto-giant. It is certainly a victory... But not a complete and final one.

Of course, Binance’s policy will now be in full compliance with US regulators' requirements, although the debate over the recognition of the crypto as securities will likely continue. 

Moreover, once Bitcoin-ETF is approved, the turnover can increase significantly. However, there is a significant demand for the services of crypto exchanges outside the legal American field.

And this demand will be satisfied with small exchanges, which will be impossible to remain in control. If Binance had any compliance at all, then now it will not be at all. And it is possible that such exchanges can take most of the market.

#BinanceResignation #ChangpengZhao #CryptoCompliance #CryptocurrencyRegulation #KYCPolicy