Binance Founder Pleads Guilty to Violating Bank Secrecy Act
Binance’s founder and former CEO, Changpeng “CZ” Zhao, has pleaded guilty to violating the Bank Secrecy Act. The charges include money laundering violations, conspiracy to engage in an unlicensed money-transmitting business, and violations of US sanctions. US authorities have not accused Binance of misusing user funds or engaging in market manipulation.
Impact on Spot bitcoin ETF Expectations
The cryptocurrency market experienced unexpected turbulence on November 21 following the announcement of a $4.3-billion settlement between Binance and US authorities. This settlement could act as a catalyst for the approval of a spot-based bitcoin exchange-traded fund (ETF) in the US.
Rise of Spot bitcoin ETF Likelihood
Matrixport analyst Markus Thielen believes that the likelihood of a spot bitcoin ETF has possibly increased to 100%. This is due to the increased regulatory compliance being enforced on the cryptocurrency industry, making it more appealing to institutional players.
Shift to Regulated Platforms
The enforcement actions by US agencies and expected sale of FTX exchange signal a shift from unregulated retail-focused exchanges to fully regulated venues for institutions. This shift is driving the trend toward regulated and compliant platforms catering to institutional investors.
Favorable Outcome for Binance
Despite CZ stepping down and a fine less than feared, Binance is expected to remain as one of the top three cryptocurrency exchanges for the next 2-3 years. While the company may face pressure to streamline its operations, the plea deal represents a favorable outcome for CZ and Binance.
### News source: cryptopotato.com