Markus Thielen explained that Changpeng Zhao will pay a fine of $50 million, which is much less than the original amount of $10 billion. This proves that regulators are willing to make concessions to cryptocurrency companies to solve problems. According to Thielen, the fine is a small percentage of Binance’s annual revenue, which is estimated at about $2 billion. Therefore, the exchange’s user base and trading volumes will not be affected, and Zhao’s resignation is only a “symbolic gesture,” the analyst noted.
Thielen is confident that Binance’s settlement with the US Financial Crimes Enforcement Network (FinCEN), the US Office of Foreign Assets Control (OFAC) and the US Commodity Futures Trading Commission (CFTC) will lead to increased regulatory compliance among many crypto exchanges. requirements. The analyst suggested that Binance will remain among the top three exchanges over the next 2-3 years. There may be a need to optimize the number of employees to 6,000 people. Even if the US Securities and Exchange Commission (SEC) was not a party to this transaction, this is a very favorable outcome for Changpeng Zhao and Binance, Thielen noted.
“The likelihood of a Bitcoin spot ETF launching in the US could be 100% as the industry would be forced to follow the same rules as TradFi companies. Tighter regulation of cryptocurrencies will strengthen the case for Bitcoin adoption by institutional players, and the first cryptocurrency could become a safe haven for many large investors,” wrote the Matrixport analyst.
According to an October forecast from Matrixport, if the US regulator approves a spot exchange-traded fund linked to Bitcoin, the BTC rate could rise to $56,000.
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