Binance, the world’s largest cryptocurrency exchange, has taken significant steps in response to a groundbreaking agreement with the U.S. Securities and Exchange Commission (SEC). The company announced the delisting of 10 major trading pairs, including notable cryptocurrencies such as Aptos (APT), Axie Infinity (AXS), and Filecoin (FIL).
Another impactful piece of news accompanied this strategic move as Binance’s founder, Changpeng Zhao (CZ), resigned from his position as CEO. This leadership change occurs in the context of a comprehensive agreement with the SEC, in which CZ admitted guilt to charges related to violating the Bank Secrecy Act.
The associated fine for these charges is colossal, amounting to $4.3 billion, marking one of the largest settlements in U.S. history with a corporate defendant.
Binance Facing Regulatory Pressures
Binance’s decision to remove certain trading pairs is directly linked to regulation and, according to the company, specifically affects those tied to its stablecoin BUSD. This action aligns with the gradual termination of services related to BUSD. However, this move also comes after revelations that Binance employees were aware the platform was serving users in sanctioned countries, a conscious violation of U.S. laws.
In response to regulatory impositions, Binance emphasized its commitment to restructuring, highlighting the addition of new leadership with deep experience. Richard Teng, former Abu Dhabi regulator, will assume the role of CEO in this new chapter for the company.
Binance’s commitment to restructuring is also evident in the agreement with the SEC, which includes the appointment of an independent compliance monitor for three years. This monitor will be responsible for overseeing Binance’s efforts to comply with U.S. regulations and ensure ethical and legal behavior.
These events mark a crucial moment in the industry. Binance will have to pay the highest fine ever imposed on a crypto company. This underscores the increasing attention and regulatory scrutiny faced by major market players.
With the overhaul of its leadership, Binance aims to navigate the compliance monitoring barriers imposed by the SEC without major setbacks.
