Catherine Chen, the head of institutional and VIPs at Binance, expressed that the exchange’s $4.3 billion settlement with the United States last year marked a significant turning point for the company. She stated that Binance is now embracing the forthcoming wave of regulation. As part of the settlement, Binance agreed to have an independent compliance monitor for three years and a U.S. Treasury monitor for five years. Chen viewed this as a positive development during a panel discussion at Paris Blockchain Week.
Chen dismissed concerns about the impact of the monitoring agreement on Binance’s performance, emphasizing that the company had been preparing for this situation. In November 2023, Binance, Binance.US, and co-founder Changpang “CZ” Zhao paid $4.3 billion to settle charges related to Anti-Money Laundering (AML) and sanctions laws violations. Zhao agreed to step down as CEO and pleaded guilty to failing to maintain an AML program. He is facing a potential prison sentence of up to 18 months, with his sentencing scheduled for April 30.
During the panel discussion, Chen highlighted the benefits of having regulations in place, stating that it provides more clarity for Binance’s users and helps them feel more comfortable with the industry, asset class, and key players. She also expressed her belief that the challenges faced by Binance are actually positive and necessary for the industry’s growth.
Binance’s new CEO, Richard Teng, stated in an interview with CNBC that the company has transitioned into a more mature phase and is looking for a global headquarters. He mentioned that they are in talks with several jurisdictions. Meanwhile, the Securities and Exchange Commission continues to pursue charges against Binance, Binance.US, and Zhao, claiming that they sold unregistered securities and mixed customer assets, although Binance denies these allegations.
In related news, a team of white hat hackers called “SEAL 911” has been formed to combat real-time cryptocurrency hacks.