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Bankless summarizes the Binance incident: Regulatory risks are already priced in, and the market will drive the next bull run.

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Bankless summarizes the Binance incident: Regulatory risks are already priced in, and the market will drive the next bull run.

The cryptocurrency media Bankless has compiled the impact of Binance's negotiation with the US Department of Justice on its guilty plea, indicating that Binance's future development may be slower. However, this event did not cause significant market volatility. Bankless believes that regulatory risks are no longer seen as a major negative factor in the market, and may have even been priced in. The cryptocurrency market is more likely to drive the next bull market.

Original article and image source: Bankless

What Price Does Binance Pay?

Earlier reports outlined the consequences Binance faces:

  • Changpeng Zhao pleads guilty, Binance fined $4.3 billion.

  • Changpeng Zhao personally pays a $50 million fine for money laundering.

  • Changpeng Zhao could face criminal charges and a minimum of three years of resignation.

  • Binance faces violations such as unregistered money transfer business, conspiracy to violate money transfer business, and violations of the International Emergency Economic Powers Act.

Binance founder Changpeng Zhao agrees to resign, pleads guilty, and Binance is fined $4.3 billion

Can Binance Afford It?

Binance can continue to operate, and regarding the $4.3 billion fine, Coinbase executive Conor Grogan cited Binance's reserve assets indicating that Binance is likely able to pay the full $4.3 billion fine without selling any cryptocurrency assets.

New Binance CEO Richard Teng also retweeted the article and emphasized:

Binance has a strong fundamental business and a debt-free capital structure, with substantial revenue and profits despite lower costs.

What Is Binance's Next Step?

Given the series of regulatory setbacks Binance has faced this year, including regulatory challenges in European countries, it is unlikely that Binance's path to compliance will be smooth after settling with the U.S. Department of Justice.

Bankless believes that Binance had been constantly pursuing any opportunity to increase trading volume and market share, but after this battle, no new startup will have the agility Binance once possessed.

Binance's UK Expansion in Disarray, Unable to Accept New Users, No Advertising Allowed

What's Next for the Cryptocurrency Market?

Bankless points out that the cryptocurrency market has remained calm in the face of today's news, with no liquidity drain or run on exchanges.

Furthermore, the U.S. Department of Justice seems to have conducted a comprehensive examination of Binance and, unlike FTX, did not find any fatal flaws that could lead to bankruptcy, which is a relief.

Bankless concludes:

Assuming no further developments or investigations in Binance's case, it can be safely assumed that the cryptocurrency market has significantly reduced the unresolved regulatory risks, with Binance's regulatory risks being well-known and already priced in. Now, the cryptocurrency market can drive the next bull market with a clearer perspective.