Matrixport analysts do not rule out that there is pressure to “right-size” Binance.
With Changpeng Zhao leaving Binance as its chief executive officer (CEO), the crypto exchange will likely have two to three years before competition in the market begins to affect the company’s position, according to a new report.
Analysts at Matrixport, a Singapore-based cryptocurrency management platform founded by Jihan Wu, wrote that “there will likely be pressure to ‘right-size’ the company.” As of July 2023, Binance had nearly 8,000 employees and was even planning to hire more, while other crypto exchanges reduced their workforce in a bid to optimize operating expenses.
“With Changpeng Zhao’s resignation and the feared sub-$10 billion fine, Binance will likely remain a top three exchange for the next two to three years.”
homeport
Analysts also suggest that more exchanges will eventually “enhance their compliance programs and become part of a shared oversight arrangement,” as the US market anticipates the launch of a Bitcoin (BTC) spot exchange-traded fund (ETF). ).
“With this plea deal, expectations for a Bitcoin spot ETF could have increased to 100% as the industry will be forced to follow the rules that TradFi companies must follow.”
homeport
Although Binance is at risk of losing ground due to the management shakeup, the report indicated that the “whitewashing” of the industry will make Bitcoin adoption at an institutional level more likely, which could pave the way for cryptocurrencies to ” become a safe haven asset. in investors’ portfolios,” concludes Matrixport.
As reported by crypto.news, Changpeng Zhao’s decision to resign as CEO of Binance and plead guilty to violating US anti-money laundering requirements has set off a complex web of events involving US regulators. ., particularly in the context of the settlement agreement.
Under the reported agreement, Zhao will resign from his position and Binance, the company he founded in 2017, will plead guilty to charges of anti-money laundering and sanctions violations. Additionally, Binance agreed to pay fines totaling $4.3 billion, including settling civil charges brought by regulators. Zhao himself also agreed to pay a $50 million criminal fine, with the possibility of a reduction based on his agreement to pay separate civil penalties.
