- The crypto community generally welcomed the news of the agreement between Binance, CZ, and the United States Department of Justice (DOJ), considering it a significant victory for the exchange and the crypto industry.
- Beyond a mild market correction, most of the crypto community sees the agreement with the DOJ and the deal for CZ as a major triumph for the exchange and the crypto industry.
- Some pointed out that the crypto community is still awaiting action from the Securities and Exchange Commission (SEC).
Although the implications of the settlement between Binance and the US Department of Justice are critical, the crypto community sees it as positive in different ways!
What Does the Sanction Imposed on Binance Indicate?
The crypto community generally welcomed the news of the agreement between Binance, CZ, and the United States Department of Justice (DOJ), hoping that it removes one of the last obstacles before the long-awaited approval of the spot Bitcoin ETF.
The $4.3 billion agreement between the U.S. and the world’s largest crypto exchange, Binance, includes the decision of former CEO Changpeng “CZ” Zhao to step down from the position as part of the agreement, based on allegations of violating U.S. anti-money laundering laws.
The news of the agreement and the CEO’s departure led to a market correction, resulting in the liquidation of a leveraged crypto position worth $175 million and the withdrawal of around $1 billion in assets from the crypto exchange.
Beyond a mild market correction, most of the crypto community sees the agreement with the DOJ and the deal for CZ as a major triumph for the exchange and the crypto industry. Many critics had previously claimed that the U.S. tracking Binance would end the exchange’s dominance.
Many consider Binance’s agreement with the DOJ as the last step before the approval of the Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission. Overall, the crypto community sees the agreement as a win-win scenario for the crypto ecosystem and a positive catalyst for the next bull run.
Not everyone is positive, though
Not everyone in the crypto community was overly positive about the Binance-DOJ agreement. Some pointed out that the crypto community is still awaiting action from the Securities and Exchange Commission (SEC) and suggested that the SEC might see not reaching an agreement with Binance and other institutions as a more challenging struggle.
However, the SEC lawsuit is a civil case, and according to analysts, the DOJ agreement signifies the removal of the most significant obstacle to the beginning of a bull market for Binance and the crypto industry.
Some likened Binance’s agreement to the BitMEX exchange deal, where former CEO Arthur Hayes admitted to violating anti-money laundering laws and stepped down. Hayes later avoided possible imprisonment of six to twelve months and was sentenced to two years of probation.
