Changpeng Zhao says crypto has entered new phase where ‘compliance is super important’ News ▸ US ▸ Binance ▸ Regulation
Changpeng Zhao says crypto has entered new phase where ‘compliance is super important’
Binance's former head sentenced, stresses compliance as crypto's future priority.
1 min read
Updated: May. 1, 2024 at 4:20 pm UTC
Web Summit / CC BY 2.0 / Flickr. Remixed by CryptoSlate
Former Binance CEO Changpeng Zhao said the crypto industry has entered the next phase where “compliance is super important.”
The convicted founder made this statement after being sentenced to four months imprisonment for breaking US compliance rules.
Zhao said:
“I will remain a passive investor (and holder) in crypto. Our industry has entered a new phase. Compliance is super important. A silver lining of this whole process is that Binance has been under the microscope. And funds are SAFU.”
Last year, Zhao admitted guilt to federal money laundering charges. Prosecutors spotlighted a corporate culture at Binance that neglected fraud prevention in pursuit of expansion, resulting in his departure from the company and a hefty $150 million fine.
This sentencing arrives at a critical juncture for the emerging industry, which is witnessing intensified regulatory scrutiny worldwide. Notably, US financial authorities have targeted major crypto entities, including Binance, Coinbase, and Kraken, to foster compliance within the sector.
Next phase
Zhao has announced his commitment to dedicating the next phase of his life to education with the initiation of the Giggle Academy project.
Giggle Academy is a non-profit educational platform that aims to tackle educational inequality by targeting underprivileged communities lacking access to conventional schooling. The initiative delivers free fundamental education to all, leveraging an interactive and tailored approach.
In recent weeks, Zhao has delivered several updates on the project, unveiling its logo and detailing its ongoing development. Last week, He said:
“We moved the goal post a little bit again since a few weeks ago. We are starting at a much earlier age now, 2-3 year olds. Start at the beginning, instead of somewhere in the “middle”, and hopefully keep growing with our community, for 18 (or more) years.”
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.