CZ permanently barred from any involvement in managing Binance, retains voting rights CZ permanently barred from any involvement in managing Binance, retains voting rights
CZ still maintains significant influence over Binance as he is the firm's largest shareholder.
2 min read
Updated: Sep. 6, 2024 at 11:01 am UTC
Web Summit / CC BY 2.0 / Flickr. Remixed by CryptoSlate
Binance has confirmed that its co-founder Changpeng Zhao (CZ) is permanently barred from managing the crypto exchange.
In a Sept. 6 statement to CryptoSlate, the exchange’s spokesperson stated:
“Under the terms of the agreement, CZ is prohibited from any present or future involvement in operating or managing the business.”
While initial reports suggested CZ could return to Binance after three years, CEO Richard Teng clarified to Axios that the ban was permanent. This prevents Zhao from ever resuming a leadership role at the platform.
Despite this, CZ remains Binance’s largest shareholder. He owns around 90% of the company, which allows him to retain significant influence on how the firm would be run. According to Teng, this means he still has voting rights on key decisions, nominating directors, and the power to replace the CEO if necessary.
Meanwhile, CZ has clarified that he does not plan to hold executive roles in other companies. He plans to invest in emerging sectors like blockchain, artificial intelligence (AI), and biotechnology.
Notably, he has already launched Giggle Academy, a non-profit educational platform that aims to address disparities by targeting underprivileged communities with limited access to formal education.
Zhao co-founded Binance in 2017 and led it to become the world’s largest crypto exchange by trading volume. However, he stepped down as CEO in November 2023 after pleading guilty to a money laundering charge in the US. He was sentenced to four months in prison in April 2024 and is scheduled to be released later this month.
Kazakhstan licensing moves
On Sept. 6, Binance announced that its Kazakhstan subsidiary had received formal approval from the Astana Financial Services Authority (AFSA) for a full regulatory license. This brings Binance Kazakhstan closer to becoming the country’s first fully regulated Digital Asset Trading Facility (DATF) operator.
The new licenses will allow Binance Kazakhstan to operate a virtual asset trading platform, engage in investment dealings, and provide custody services for virtual assets under full license conditions.
Binance Kazakhstan passed a stringent review by the regulator, which assessed the firm’s offerings under the AIFC Digital Asset Activities, Conduct of Business Rules, Anti-Money Laundering (AML) laws, and other relevant regulations.
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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.
Richard Teng, a veteran in the financial services and regulatory sectors, boasts over three decades of extensive experience.
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.
