Regulation
Changpeng Zhao says crypto has entered a new phase where ‘compliance is extremely important’
Ancient Binance CEO Zhao Changpeng said the crypto industry has entered the next phase where “compliance is extremely important.”
The convicted founder made the statement after being sentenced to four months in prison for violating US compliance rules.
Zhao said:
“I will remain a passive investor (and holder) in crypto. Our industry has entered a new phase. Compliance is extremely important. The positive side of this whole process is that Binance has been put under the microscope. And the funds are SAFU.
Last year, Zhao admitted guilt in federal money laundering charges. Prosecutors exposed a corporate culture at Binance that neglected fraud prevention as it continued to expand, leading to leaving the company and a big $150 million fine.
This conviction comes at a critical time for this emerging industry, which is facing increased regulatory scrutiny globally. The American financial authorities have notably targeted major crypto entitiesincluding Binance, Coinbase and Kraken, to promote compliance within the industry.
Next phase
Zhao announced his commitment to dedicate the next phase of his life to education with the launch of the Giggle Academy Project.
Giggle Academy is a non-profit educational platform that aims to combat educational inequality by targeting disadvantaged communities who do not have access to conventional education. The initiative provides free fundamental education to all, leveraging an interactive and personalized approach.
In recent weeks, Zhao has provided several updates on the project, unveiling its logo and detailing its ongoing development. Last week he said:
“We have moved the goal post a little again in recent weeks. We now start at a much earlier age, around 2-3 years old. Start at the beginning, rather than somewhere in the “middle”, and hopefully continue to grow with our community for 18 years (or more).