Binance CEO’s failure is ‘the end of an era’ – Charles Hoskinson
In a November 22 YouTube video, Cardano founder Charles Hoskinson reflected on the news of Binance CEO Changpeng “CZ” Zhao's departure from the exchange. Hoskinson says this event represents “the end of an era”. He argued that entrepreneurs must either comply with the regulation or adapt entirely unlicensed protocols.
End of an era https://t.co/d3AcHWu66C
— Charles Hoskinson (@IOHK_Charles) November 22, 2023
In the video, Hoskinson says that CZ is “part of a class of entrepreneurs in the cryptocurrency space that is growing, growing, and improving the landscape of things.” In the early days of crypto, bitcoin traders used spreadsheets to make trades and send money to buy bitcoin through PayPal, Hoskinson said. This period represents the “first wave” of innovation in space. CZ and Binance came in the “second wave” in 2017 and became “Leviathan in our industry”. “He [CZ] “He was one of the greatest entrepreneurs of our time,” Hoskinson said, adding that “trillions of dollars in assets flowed through his exchanges.”
However, Hoskinson warns that the world is changing, and entrepreneurs using centralized systems will not get by if they don't comply with regulations at the same time. This is because “the United States essentially has a weaponized financial regime,” and this regime “doesn't allow America's adversaries to open up their markets.” […] Trade and do things. Hoskinson says the world is becoming “multipolar,” with many countries rejecting the US-led system. In his view, this crypto is “caught in the middle,” leading to events like the Binance plea-deal.
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He suggested that the US government will likely continue its efforts to regulate crypto services, including eventually trying to “crack down” or impose restrictions on foreign wallets. However, he said, entrepreneurs still have “a lot of power” to avoid the threats of some regulatory bodies that are used to promote independence. Hoskinson suggested that Midnight, a network aimed at facilitating transactions based on algorithmic rules, could offer part of the solution to the problem of government crypto regulation.
On November 21, the US Department of Justice announced that CZ and Binance had agreed to a plea deal related to criminal charges for violating the US Bank Secrecy Act. That same day, CZ announced his resignation as CEO of the exchange and posted a $15 million bond in US District Court for his release. CZ's sentencing hearing is scheduled for February 23, 2024. Hoskinson called CZ a “friend” and a “good guy” in the video.
