Investing.com - The cryptocurrency sector rises on Thursday on the back of corporate news. moves above $37,000 and rises above $2,000.
The sector is rebounding from recent declines after news that Changpeng Zhao, founder and CEO of Binance, the world's largest crypto exchange, resigned following revelations of wrongdoing in the United States. The firm has reached an agreement with the Department of Justice, the Treasury and the Commodity Futures Trading Commission (CFTC) to pay a record $4.368 billion fine for violating anti-money laundering laws and securities regulation.
Franco Macchiavelli, head of analysis at Admirals Spain, discusses the implications of the Binance case for the crypto world. "The Binance case has huge implications on several fronts. First, it sends a strong message about accountability and regulatory compliance in the cryptocurrency space. This event underscores the critical importance of following financial laws, especially in a field as dynamic and evolving as cryptocurrencies," he says.
"The record $4.3 billion fine and associated penalties highlight the global reach of US regulatory jurisdiction in the crypto space. This suggests a trend towards stricter regulation and more rigorous oversight of cryptocurrency exchange activities, especially in relation to compliance with money laundering and international sanctions laws," Macchiavelli adds.
"Moreover, the fact that the founder, Zhao, pleaded guilty and agreed to pay a significant personal fine signals that the leaders of crypto platforms can be held personally liable for the illegal actions of their companies. This could change the way industry leaders approach compliance and business decision-making," he adds.
"Finally, this event highlights the importance of regulatory compliance and constant monitoring in the crypto space. Companies operating in this sector should pay special attention to global financial regulations and establish robust compliance programmes to avoid similar sanctions in the future," he concludes.
Manuel Villegas, digital assets analyst at Julius Baer (SIX:), notes that "regulatory hurdles are likely to increase as a result of these developments, but overall we do not believe they will hinder the long-term evolution of the asset class".
Translated from Spanish using DeepL.
