Bitcoin Forum

Big Headline and Crypto Crackdown

Binance CEO Changpeng Zhao who has been in office over 6 years resigns. In general, this is poised to make a considerable difference for Binance as a primary exchange platform. According to New York Times he agreed to plead guilty to money laundering violations as part of the plea he will step down as CEO and pay $50 Million. Also, the Binance as an establishment has a settlement of $4.3 Billion negotiation with BOJ.

It is important noting that Binance was caught not for improper use of money, but for failing to adhere to regulatory frameworks and norms. So, I wonder if there are clear regulatory rules, or if the SEC and other enforcement agencies prefer to regulate through litigation. When was the last time the SEC worked with congressional members to develop new policy and operational frameworks?

With what has happened to FTX, BITREX’s and BINANCE I can say it is a Crypto Crack-down.

Let me ask do you think Binance will be the Last Pendulum to swing?

It is a clear sign regulator don’t want crypto to succeed. Do not forget that Kraken got hit again and now they are fighting for their mission in the crypto space. If this continues it implies that the management of different exchangers will not be around in the next 4 years. They will be replaced by traditional financial professionals who will be operating this new technology in a regulated complying fashion.
 
Let me summarize by stating that there are global elements at work, and we have seen manipulations in the crypto market, and I don't believe there is possibility of ETF certification if Binance maintains its present level of power. If you remove the vast center of power away from crypto, you are returning to the conventional large center of influence known as Wall Street. Exactly what will bring all the governing bodies to position and approve regulations.

with many ETF applications wanting to use coinbase as the defacto prime bitcoin spot price index, brushing the competition off the cliff has its advantages

In my point of view Binance has get much popularity and many investors still believe in Binance and they use it for trading.
And according to your mind that this was a crackdown against exchange so this could be right. Like you mentioned FTX and Buttrex but I think Binance is very much stronger as compare to the mentioned exchanges. With in his career of CZ he tried well to make a better platform for users and ultimately he succeeded in his work.
Don't know what will the next CEO do? I hope he will continue and make some good changes in Binance to improve the platform.
By the way this is cryptocurrency world and anything can happen at anytime so no one has surety about the Binance is in the last pendulum or not or the crackdown against exchanges will be succeeded or not.

But you noted one thing the news of changing of CEO of Binance did not effect much the market and it recovers and now trading at same point from where it went down. This is a good indication by the way.

I understand your positive outlook about Bianance exchange and its inherent resilience to face current unfavorable situation, the main question emerges, whether Bianance with new management team without CZ will be able to maintain all successes achieved during his tenure. The ability to navigate successfully through current challenging situation and sustain positive trajectory in future, remains to be seen.

The Binance exchange users have withdrawn funds worth more than $1 Billion, after the resignation of CZ, which is an alarming situation.


https://www.cnbc.com/2023/11/22/whats-next-for-binance-after-doj-settlement-departure-of-changpeng-zhao.html

Speaking as someone who wants to see both sides lose, regulators AND exchanges, some of you may not like what I'm about to say:

This outcome is necessary.  Exchanges are merely copying the antiquated business model of commercial banks (only with even less oversight and fewer safety nets than those crooks have).  This is not viable as a long-term solution.  These so-called services need to adapt and evolve.  Exchanges, in their present custodial guise, need to become extinct.  It's an incredibly foolish way to build things in an environment where regulators are naturally going to be hostile towards everything we do.  Regulatory bodies will always get the custodial exchanges the moment the custodians become too big to evade them any longer.  It's like painting a target on your back, only the target gets bigger and easier to bullseye over time.  And that's assuming the exchange survives long enough without a major hack/theft/exit scam/etc to begin with. 

None of this should be seen, in any way, as surprising or alarming.  It's the natural order of things.  This will always be the eventual outcome.  If you are a custodian or you deal in any assets a regulator can claim falls under their jurisdiction, sooner or later, a regulator will catch up with you and will climb up your arse for a full and thorough inspection.  It won't take much to find something they don't approve of.  This will happen over and over again until people stop building these archaic, money-swallowing pits of oblivion.

People need to stop supporting this 'barely-passes-for-a-business-model' model.  It's really bad for you.  It essentially takes your self-determination, your security, your privacy and (obviously) your money and just gives it away to total strangers you've never met and who don't care about you.  I'm a little surprised more people don't see it that way, but that's what you're signing up for when you hand your funds over to random people on the internet.

Peer-to-peer.  This is our form.  This is our function.  Do this.  Build this.  Be this.  And then the problem goes away.

I really get your point but you need to understand that you having your asset in a custodian exchanges doesn’t mean you’re giving out your money to a stranger. We trust our local banks and that’s why we use them. As for me once an exchange is able to meet up to the regulatory bodies demand I’m good to go, there are still few exchanges like Bitget and few others that still meet up with the regulations so you can go for them.

Is the first step on the path to betrayal.

The whole idea of this is that it's designed to eliminate the need to rely on trust.  I'd argue the track record for most exchanges speaks for itself.  They don't deserve your trust.



How well do you know these people?  Would you call them acquaintances?  Have you met them?

There was a time when you could have a face-to-face conversation with your bank manager.  You could get to know them.  Build up a rapport.  Glean what their values were.  Maybe at that point in time you could make an argument in favour of trust.  But those days are gone.  All we have now are faceless corporations.  These people, by definition, are total strangers.  We know nothing about them aside from whatever public facade they choose to present to the world.

From the little information that I have gathered, Coinbase seem to more transparent than Binance and this adds more to the reasons why they can't trust CZ, they want someone they can control and trust that's why CZ have to leave, he is smart to take this decision instead of trying to prove stubborn, this will only net him some few troubles and maybe small time sentence compare to going to war with this people, I believe he knew that he can never win the battle, not with Capo and the Black Rock.

They are free to do whatever they like, I am not going to give my trust away to any of these people and entities, if they like they can clean the whole crypto space clean and take control but no one is really that clean, even these people will start using the crypto space to their own advantage after those that they hate are gone, in this space, only trust yourself.

Keep your Bitcoin away from these custodial companies, even if they are on the top taking over the world it doesn't stop bad things from happening, no one can keep your keys safe than you.

This is not the very first time they will both be having complicated issues on regulations because they will want to have a proper research in knowing about what's going on with the exchanges, then also spy on their data and informations


No, why should this be tagged a crypto clampdown when those using them are aware of the risk involved in either the kind of coin they Invested or the exchange in use.


No, it has not been declared bankrupt yet, there are further investigations going on concerning it's matters with SEC and the regulatory bodies

I don't think so but there will be more that could possibly happen in the future. View the current performance of the Financial Industry Regulatory Authority. This is not like a credit card transaction.

It is clear from the beginning that the American government wants to control Crypto completely. This is part of the United States’ doctrine that it controls the world and therefore does not like to have anything outside its control.

All the hype they make about crypto and centralized exchanges boils down to just one word “control.”

Of course, I am not saying that Binance, Kraken, or the rest of the central exchanges are innocent. On the contrary, they are guilty and they deserve what is happening to them because they committed many legal violations and they are the ones who gave the SEC the opportunity to attack them and attack Crypto through them as well.

This only confirms one thing: stay away from centralized exchanges because they are the reason for all the disasters that have come to Crypto.

How much were you paid by Bitget to shill their exchange in every post you make in the forum, it is so disgusting to read. There are many other Bitget shills like you in the forum these days, but i think you are the pick of the bunch.
Bitcoinpoly is one of the many Bitget shills around in the forum these days, he doesn't believe in any of the shit he says, he is just probably paid to write 'Bitget' in every post he makes, check their trust feedback and this topic too:
https://bitcointalk.org/index.php?topic=5472656.msg63096579#msg63096579

It's all about control, US fed just wants to control everything in the world and crypto was something which couldn't control due to its decentralised manner and they tried their best by intimidating users against adopting it and even creating obstacles for Bitcoin but when everything has failed they have resorted on cracking down the exchanges and still they will fail miserable as this will push more and more users towards DEX which even I am considering now as I had been using CEX due to UI and liquidity but seems like CEXs are involved in illegal activities and violating the norm which makes them no less than other criminal gangs violates the rules but it's the investors and traders who will be in soup if they just disappear one day hence it's time we more to true essence of crypto which is decentralised exchanges and decentralisation. But it would take time for us to adopt to it.

It doesn't mean we fall in trap of the feds since they are trying to do all this just before having to kill crypto.

Governments have been against crypto since the Ftx collapse because those that lost funds complained to the government and they basically needed to take some action.

Notice how none of this was an issue prior to Ftx. Then as soon as it collapsed everything changed and we had exchanges getting sued and massive crypto regulations.

Some think it’s a good thing because it paves the way for the etf however which could be true. Binance was just too big and why they went after it.

Binance is mostly No.1 exchange on ranking. It earned good trust of bussinessmen. His status was not affected by the crackdown. Even today, it is number 1 in the ranking. It is possible that this action was taken because of feeling jealous of Binance's popularity and people's trust and confidence in it. But today also ,as I see it is is No.1 in ranking.Binance CEO Changpeng Zhao who has been in office over 6 years done well for its development and to make it a strong exchange.
I think after new CEO ,its will remain on same working. And its credibility will not be affected.

Nope.

If Binance is going to be the last, then the last ones for the past years should be the lasts as well. But this is crypto, the roller coaster of all markets and there are situations that we are not expecting to come just like these exchanges and CZs stepping down.

For some countries, it's likely that they don't want to. But with these situations, these are just signs that they want to get involved and they want a huge slice of the cake.

I am by no means justifying the SEC crackdown on Binance and other centralised platforms but from some reports, CZ knew about those laws and failed to abide by them. There are claims that he was warned by some employees but the firm refused to heed the warning. CZ has also pleaded guilty to money laundering charges which means he is not innocent. My take is that these centralised platforms can do anything to make a profit even if it will take seeking for illegal avenues to bypass regulation.


FTX case and that of Binance are different. Sam Bankman-Fried mismanaged people's funds and the exchange went bankrupt. We can argue that Binance is facing persecution but the case of FTX is a case of scam.


I share the same view with you. Very soon exchanges will operate like normal commercial banks where all business transactions will be open to the scrutiny of concerned regulatory agencies at all time.

I don't think that these cases are the same. In the case of FTX, there was a clear financial crime, defrauding investors (https://www.sec.gov/news/press-release/2022-219). With Bittrex, the settlement was relatively minor, and they were charged  (https://www.sec.gov/news/press-release/2023-150)with failing to officially register as an exchange in the USA. Binance is somewhere in between  (https://www.sec.gov/news/press-release/2023-101)these two in terms of charges, it seems.
While the SEC is present in all those cases, the charges weren't presented out of thin air. In case of Binance, a part of the charges is related to violation of the US sanctions (https://www.cnbc.com/2023/11/21/binance-ceo-changpeng-zhao-to-plead-guilty-to-federal-charges-step-down.html).
I admit that it's not looking good when major exchanges are hit with charges over a relatively short period of time, and it seems that the US is wants harsher regulations for crypto businesses (or at least a more strict accountability within the existing regulations).

Big differences between Bitcoin and cryptocurrency exchanges. Bitcoin is itself, unique and everyone can access to Bitcoin nodes, use a Bitcoin wallet to store their bitcoins.

Cryptocurrency exchanges are mostly centralized and all exchanges you discussed are centralized. Their service can be closed by themselves when owners no longer want to spend time to run their business, can be sold to new owners or can be seized, shut down by governments.

If you know how many cryptocurrency exchanges die, you will not surprise.

Exchange graveyards (https://www.cryptowisser.com/exchange-graveyard/) with many exchanges die but Bitcoin is not dead.
https://buybitcoinworldwide.com/bitcoin-is-dead/

The former CEO of Binance has been charged with money laundering and has admitted to money laundering but has not admitted to the amount of money that has been reported. As he has hunted in the initial interrogation, more information may be known about this later. So that he does not have any influence on this exchange, he has stepped down from the post of CEO of this exchange and appointed a new CEO. Binance is currently one of the most popular crypto exchanges and people trust this exchange enough. So far we can't feel that these exchanges can do anything bad to people but the problem is that such exchanges suddenly get involved in crimes like money laundering and we have noticed this before. FTX cheated people and until they cheated people were a very trusting exchange.

If CZ is guilty of money laundering like claimed and like he pleaded guilty then I think it is deserved that both him being gone and the company being charged that much. This isn't really a big crackdown issue, it is just reality that if you do money laundering then you are going to end up being a little bit of in guilty there already, so you are going to get reprimand for it as well.

I think it should be noted that we are talking about something that will benefit everyone if we are getting rid of people who are bad and doing bad things at bitcoin, it is going to be the thing that will give them all the benefits and should be something that will do a lot of good. I understand that it may not be all that easy, but can be done.