Binance, the world’s largest cryptocurrency exchange, is facing a major regulatory challenge. In response, the exchange has recently announced the delisting of 10 major trading pairs, including notable cryptocurrencies such as Aptos (APT), Axie Infinity (AXS), and Filecoin (FIL).
In addition, Binance founder Changpeng Zhao, commonly known as CZ, has decided to step down from his role as CEO due to criminal charges against the exchange, including breaking sanctions and money-transmitting laws. The settlement with the US Securities and Exchange Commission (SEC) resulted in a penalty of $4.3 billion, making it one of the largest settlements the US has ever obtained from a corporate defendant.
The delisting of the trading pairs is in line with Binance’s phased termination of BUSD-related services. Revelations that Binance employees were aware the company was serving users in sanctioned countries, knowingly violating US laws, have prompted a significant reshaping of Binance’s operations.
In response to the settlement and regulatory challenges, Binance has acknowledged the resolutions reached with various agencies. The exchange emphasized its commitment to restructuring over the past few years, highlighting its “new leadership with deep compliance experience”. Richard Teng, a former Abu Dhabi regulator and Binance’s regional markets head, is set to take over as the new CEO.
The delistings and restructuring are part of Binance’s efforts to comply with US regulations. As part of the settlement, Binance will have to appoint an independent compliance monitor for three years and report its efforts to comply with US regulations.
These developments mark a significant moment in the cryptocurrency industry, underlining the increasing scrutiny and regulatory challenges faced by major players. Binance has expressed confidence that it would emerge as a stronger company, laying the foundation for the next 50 years.
