Whatever the public opinion is(CZ definitely went off-topic), and while he's definitely going to get some hate from Elon/Tesla fanboys, this is freakin great marketing for Binance. Nothing's going to get you publicity than the cult leader being low-key attacked on social media lol.
This will clearly not be great marketing for Binance. The regulators are after them because Binance avoids jurisdictional compliance. They are also accused of insider trading and market manipulation. CZ does not need to give more reasons for regulators to send them a cease and desist order. Also, why did this need to come from Elon to fix the problem? They do not care about their users? It is a form of manipulation?