[2021-07-28]Binance CEO says he’s willing to step down as world's biggest crypt

[Woodie]

Binance CEO says he’s willing to step down as world's biggest crypto exchange welcomes regulation

The boss of cryptocurrency exchange Binance says he's willing to step down from his role as the company seeks to become a regulated financial institution.

Speaking at a virtual press conference Tuesday, Changpeng "CZ" Zhao said he had no immediate plans to quit his role but that the company does have a succession plan in place.

"We're going to pivot to be a fully regulated financial institution going forward," Zhao told reporters, adding that, during that pivot, he would be "very open" to finding a replacement CEO with more regulatory experience.

Binance is the world's largest digital currency exchange by trading volume. However, it has come under intense regulatory scrutiny lately as authorities around the world seek to clamp down on the fast-growing crypto industry.

In the U.K., the Financial Conduct Authority banned Binance's British unit from undertaking any regulated activity. Binance was one of many crypto firms that withdrew their applications to the U.K.'s temporary licensing regime due to failing to meet anti-money laundering requirements, the FCA said.

Regulators in Japan, Canada and Italy have also clamped down on the firm, warning it is not authorized to operate in the countries.

Read more https://www.cnbc.com/2021/07/27/binance-ceo-says-willing-to-step-down-amid-crypto-crackdown.html

[NeuroticFish]

as world's biggest crypto exchange welcomes regulation

This is somewhat sad news and it explains the last move(s) of Binance.
And this may be the end of an era, the era of big centralized exchanges (if getting regulated I expect Binance "deflate").
Maybe this is when the era of decentralized exchanges begins for real?!

[WePiggy]

People trust Binance because it is a top exchange and also there is a public figure heading the operation. Accountability brings trust, so it will be a sad day when he steps down. He probably knows what will happen when they decrease the 2 BTC limit, volume will drop and he doesn't want to be a part of it when Binance falls

[bbc.reporter]

as world's biggest crypto exchange welcomes regulation

This is somewhat sad news and it explains the last move(s) of Binance.
And this may be the end of an era, the era of big centralized exchanges (if getting regulated I expect Binance "deflate").
Maybe this is when the era of decentralized exchanges begins for real?!

It appears that CZ wants to not be the Binance CEO anymore when the regulators enter and crackdown on the exchanges in the cryptospace hehe. There also some articles saying that Justin Sun will retire. This might be connected. Is it the invisible hand of Beijing?

[stompix]

This might be connected. Is it the invisible hand of Beijing?

If it were the hand of Beijing VZ would have become himself invisible, there is some really weird magic happening there   and nobody is safe, not even the chief of the Interpol I doubt it's because of China, CZ knows his maneuvering pace is getting smaller each day, we've already seen so much news about regulations, from Canada to Hong Kong, they've dropped stock tokens, then they limited leverage, they're not offering margins against the pound and the euro, the way this is going it's clear that they are pressured from all sides. And probably CZ has a lot of skeletons in his closet so he might try to leave while he still can rather than taking on what's coming, I have a feeling he's busy deleting a lot of stuff at the moment.

Maybe this is when the era of decentralized exchanges begins for real?!

Decentralized exchanges are targeting people who buy and hold or dump, not people who are actively trading all day and switching between pairs in seconds, this niche will never be covered by decentralized exchanges. If indeed centralized exchanges might be losing customers decentralized one aren't gaining pace either. I assume you're talking about exchanges like bisq, not uniswap tokens.

[SFR10]

This is somewhat sad news and it explains the last move(s) of Binance.

They shot themselves in the foot when they chose to ignore all of the warnings, so it was bound to happen ^{[unfortunately]}.

and also there is a public figure heading the operation. Accountability brings trust, so it will be a sad day when he steps down.

You have a point but it doesn't look like he's going to completely abandon Binance:

• We are always hiring for CEOs.
  
  I don't need to be CEO, and I am not leaving. I will always find ways to contribute to the community behind the logo tattooed to my forearm.
  
  I am proud to be a member of the #binance ecosystem. Let's keep growing it.
  

[NeuroticFish]

Decentralized exchanges are targeting people who buy and hold or dump, not people who are actively trading all day and switching between pairs in seconds, this niche will never be covered by decentralized exchanges.

True. However, many people buying or selling crypto only now and then still use the convenience of centralized exchanges, where the interface is helpful and there's tech support. Some did start moving to Bisq and such, but after Binance asking KYC, more will migrate.

Of course, day traders will remain, although now for them will no longer matter if it's Binance or other centralized exchange and they'll have to start being more careful with their earnings and reporting them (!), hence some may go "out of business".

If indeed centralized exchanges might be losing customers decentralized one aren't gaining pace either. I assume you're talking about exchanges like bisq, not uniswap tokens.

Until now Binance was no-KYC and at hand. With this option no longer available Bisq and such may start growing.

[DooMAD]

Can't blame him for wanting out of that particular role.  I certainly wouldn't want to be in charge of an exchange, at any point in Bitcoin's history, really, but particularly in the current regulatory climate.  It must be quite daunting when you know that the government of pretty much every nation on earth would prefer it if your company didn't exist.  Any they may endeavour to restrict access for their citizens to your services in future.  Not to mention that people are actively working on technology to make your entire business model obsolete.

They say every man has his price, but I'd still be highly reluctant to take that job, whatever the recompense.

[stompix]

True. However, many people buying or selling crypto only now and then still use the convenience of centralized exchanges, where the interface is helpful and there's tech support. Some did start moving to Bisq and such, but after Binance asking KYC, more will migrate.

I don't believe in this migration, not on a large scale.
A lot of people, even when it comes to cryptocurrencies don't like totally decentralized solutions, they want a website with customer support, they want the assurance there is somebody to tell them how and what and when.

Besides, even the aspect of protecting your personal info isn't done quite right with decentralized exchanges.
Ok, you protect your mugshot from Binance but you give away your name and bank account to a complete stranger on the internet.... And if you think of not using banks but some other payment method that obfuscates your name it becomes so complicated and so much more expensive that the average Joe will simply not do it.
The ones that care about their privacy are just a few in a million and a lot of them will not deal with something that can land them in a police sting operation.

[bbc.reporter]

This might be connected. Is it the invisible hand of Beijing?

If it were the hand of Beijing VZ would have become himself invisible, there is some really weird magic happening there   and nobody is safe, not even the chief of the Interpol I doubt it's because of China, CZ knows his maneuvering pace is getting smaller each day, we've already seen so much news about regulations, from Canada to Hong Kong, they've dropped stock tokens, then they limited leverage, they're not offering margins against the pound and the euro, the way this is going it's clear that they are pressured from all sides. And probably CZ has a lot of skeletons in his closet so he might try to leave while he still can rather than taking on what's coming, I have a feeling he's busy deleting a lot of stuff at the moment.

I disagree. I reckon the invisible hand of Beijing would only use murder as the final alternative action. CZ also has not acted in a way similar to Justin Sun which the hand dislikes.

This is what happens to the famous Chinese CEOs who acts similar to Justin Sun or talks bad about the Chinese communist party. They go back to China for another round of communist brainwashing and keep them in control. However, the official storyline is he will help with a research project for the invisible hand hehe.



Justin Sun, the founder of the Tron blockchain, is participating in a research project at the prestigious Central Party School, the higher education institution that trains cadres of the Communist Party of China.

Sun is “transferring from business to school,” he said on his WeChat and Weibo accounts, a statement some took to imply he’s thinking of winding down his business activities.

The announcement met with support from some Weibo users, who saw it as motivated by nationalist sentiment: “Brother Sun can’t stand the plight of the American Empire and will come back to build socialism with us,” wrote a user identified only as “The banner of Marx.”

Source https://finance.yahoo.com/news/justin-sun-hints-retirement-joins-091216974.html

[JeromeTash]

He's probably looking for away out before the law enforcement bodies which are out for blood catch up with him. Looking at what happened to Bitmex and the arrest of their CEO Arthur Hayes not so long ago. It's apparent that Binance has been facing a lot of scrutiny lately, as seen by all the hurried monthly changes in the services they offer and features of the exchange.

[bbc.reporter]

@JeromeTash. Agreed. I speculate that by the end of 2021 Binance might be 30% or more smaller than what it was during the beginning of 2021 hehe. Their Twitter account announced this, however, it was deleted some hours later. I am not quite certain why it was deleted.



Source https://mobile.twitter.com/binance/status/1421033044337729536?s=12



Also, it appears this speculation of mine from April 19, 2021 is becoming real hehe.

https://bitcointalk.org/index.php?topic=5331528.0

[stompix]

I am not quite certain why it was deleted.
Source https://mobile.twitter.com/binance/status/1421033044337729536?s=12

Weird, there is still a tweet up
https://twitter.com/binance/status/1421067563027603469
but without the part about evaluating partners and all that and a slight change:

#Binance will wind down its futures and derivatives products offerings in Germany, Italy, and the Netherlands.

They no longer talk about across Europe but just those 3 countries, maybe an alert from the damage control team?

[o_e_l_e_o]

Maybe this is when the era of decentralized exchanges begins for real?!

As much as I wish that this would be the case, I don't think it will happen any time soon, or indeed, ever. The average crypto user has shown there is almost no limit to the amount of shit a centralized exchange can force on them and they'll just put up with it and keep using that exchange. Coins hacked. KYC sold, lost, or stolen. Accounts frozen. Ridiculous KYC. Blockchain analysis. Spying on you. Tracking your transactions. Reporting to your government. Insider trading. Market manipulation. Ridiculous fees. The list goes on. Any sane person would have abandoned such exchanges years ago, and yet, centralized exchanges continue to grow and grow.

Ok, you protect your mugshot from Binance but you give away your name and bank account to a complete stranger on the internet....

There is a significant difference between handing over scans of your passport to Binance, who then hand it over to a number of third parties around the world, with no guarantees regarding how securely it is transferred or stored, how many copies are made, and who has access to them, and your name showing up next to a transaction on someone else's bank statement.

[bbc.reporter]

I am not quite certain why it was deleted.
Source https://mobile.twitter.com/binance/status/1421033044337729536?s=12

Weird, there is still a tweet up
https://twitter.com/binance/status/1421067563027603469
but without the part about evaluating partners and all that and a slight change:

#Binance will wind down its futures and derivatives products offerings in Germany, Italy, and the Netherlands.

They no longer talk about across Europe but just those 3 countries, maybe an alert from the damage control team?

Who are their partners? Their banking partners? It appears that the partners said no to any chance of bringing back derivatives and futures trading with leverage hehe. I am not certain if I agree, however. People should be given the right to gamble their money in everywhere they choose.

[bbc.reporter]

I am shaking my head on this statement by CZ hehe. Compliance to regulations will always be reactive because there would be no regulations to be proactive to judge if something is illegal or legal until the regulators say they are illegal or illegal.



Earlier in the day, CEO Changpeng "CZ" Zhao said in a tweet that the exchange would take a more proactive approach to compliance.

Source https://www.coindesk.com/binance-to-take-proactive-stance-to-compliance

[o_e_l_e_o]

Compliance to regulations will always be reactive because there would be no regulations to be proactive to judge if something is illegal or legal until the regulators say they are illegal or illegal.

Not necessarily. It's been obvious to everyone for quite a while that unverified non-KYC accounts will not last, and will eventually be clamped down on entirely. We don't need to wait on Congress passing laws to that effect to know that it is coming. We know that crazy leverage will be clamped down on. We know that these ridiculous interest and lending accounts will be clamped down on.

This statement from CZ should be taken as a warning to all Binance users. Expect more restrictions, more KYC requirements, more privacy invasion.

[SFR10]

This statement from CZ should be taken as a warning to all Binance users. Expect more restrictions, more KYC requirements, more privacy invasion.

At this rate, I'm not sure if there'll be a Binance exchange by 2022 ^{[I hope I'm wrong]}.
^{- By the look of things, they're falling apart and only have themselves to blame!}
On a slightly related matter, Brian Brooks ^{[CEO of Binance.US]} has resigned:

• Greetings #crypto community.  Letting you all know that I have resigned as CEO of ⁦⁦⁦@BinanceUS . Despite differences over strategic direction, I wish my former colleagues much success.  Exciting new things to come!

[o_e_l_e_o]

At this rate, I'm not sure if there'll be a Binance exchange by 2022 ^{[I hope I'm wrong]}.

I don't think it would be such a bad thing. They already have far too much power in the cryptocurrency sphere, from the exchange, to Brave browser, to Coinmarketcap, to their own shitcoins, and so on. One company having so much power over users, what they buy, what they see online, even how coins and exchanges are "ranked", is not a good thing. Having them broken up a bit would be a good thing, in my view. Not to mention that having so many users' data and so many funds being stored by one exchange is a huge target for hackers and a huge security risk.

[The Sceptical Chymist]

So the CEO said he would be willing to be replaced by someone with "more regulatory experience"....but the headline kind of makes it sound as if there's going to be an imminent transition of power at Binance, and that doesn't appear to be the case.  He could have been saying that just to sound more pro-regulation in case those regulators are watching what he says (and no doubt they are).  In fact, I'm almost certain that's exactly what's going on here.

I would say this headline is almost clickbait, because the headline doesn't quite match up with what Changpeng Zhao actually said.  Just wait, in two years' time I bet you that he's still the CEO regardless of what kind of regulation Binance is operating under.  Saying you're "very open" to being replaced is a long way away from saying your company is actively seeking a replacement.

On a slightly related matter, Brian Brooks ^{[CEO of Binance.US]} has resigned:

Huh.  I wonder what's going on there that the Binance US unit's CEO would step down.  That rarely happens unless something is seriously wrong with the company or it's a ruse, and the CEO was actually fired.