Following speculation about a possible return, Changpeng Zhao, known as CZ, the co-founder and former CEO of Binance, has sparked debate about the implications of his recent presidential pardon for the fair’s activities in the United States.
Will CZ reclaim his CEO position at Binance?
Industry observers suggest that this major development for CZ and Binance as a whole could pave the way for Zhao to resume leadership roles and consolidate Binance’s US operations.
According to According to Bloomberg, the company is exploring several options, including the possibility of integrating Binance.US into its global operations or allowing its global exchange to enter the US market, as indicated by a source familiar with the matter.
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“This cycle is largely driven by US institutional investors and investment products, and that is exactly where Binance can now shift its focus,” said Markus Thielen, CEO of 10x Research.
He added that the US branch will likely be reintegrated into Binance’s global ecosystem, giving US investors direct access to the platform’s “deep liquidity and extensive derivatives offering.”
Attention now turns to whether Zhao will try to reclaim the land CEO role which he previously renounced. In recent weeks, he updated his profile on social media platform
However, not everyone believes Zhao is keen to return as CEO. David Namdar, who heads a BNB treasury firm backed by Zhao’s family office, noted: “I think he’s operating with more weight off his shoulders when he’s not running the exchange. I would be surprised if he stepped back into that role.”
Industry leaders predict greater engagement
Patrick Horsman, Chief Investment Officer of treasure trove of digital assets (DAT) company Applied DNA Sciences, which invests in Binance Coin (BNB), emphasized that Binance’s technology, liquidity and relatively low fees could position the company as a dominant player in the US crypto market.
However, Bloomberg emphasizes that the pardon could not only improve Zhao’s personal prospects but also unlock new opportunities for Binance’s global expansion.
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Notably, the company has minority stakes in subsidiaries throughout Asia, including Thailand and Malaysia, where regulatory frameworks imposing ownership suitability tests on major shareholders.
“A criminal conviction can be a barrier to anyone seeking to acquire a beneficial ownership interest in a regulated or listed company,” explains Chris Holland, a partner at HM, a consultancy based in Singapore.
Cosmo Jiang, general partner at Pantera, expects Zhao to “become more involved in Binance’s activities” now that he has been pardoned. “Any time a founder returns to a company, it’s always a refreshing moment; you typically see more growth and better execution,” he noted.
Featured image of DALL-E, chart from TradingView.com