Former Binance CEO Changpeng Zhao said the crypto industry has entered the next phase where “compliance is super important.”
The convicted founder made this statement after being sentenced to four months in prison violating US compliance rules.
Zhao said:
“I will remain a passive investor (and holder) in crypto. Our sector has entered a new phase. Compliance is super important. A positive side of this whole process is that Binance has come under scrutiny. And funds are SAFU.”
Last year, Zhao pleaded guilty to federal money laundering charges. Prosecutors highlighted a corporate culture at Binance that neglected fraud prevention in pursuit of expansion, resulting in his departure from the company and a hefty $150 million fine.
This conviction comes at a critical time for the emerging industry, which is witnessing increased scrutiny from regulators worldwide. Notably, US financial authorities have targeted major crypto entities, including Binance, Coinbase and Kraken, to promote compliance within the sector.
Next phase
Zhao has announced his commitment to dedicating 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 address education inequality by targeting underprivileged communities that do not have access to conventional education. The initiative provides free fundamental education to everyone, using an interactive and tailor-made approach.
In recent weeks, Zhao has provided several updates on the project, unveiling the logo and detailing its ongoing development. Last week He has said:
“We have moved the goal post a bit since a few weeks ago. We now start at a much younger age, 2-3 years old. Start at the beginning, instead of somewhere in the “middle,” and hopefully continue to grow with our community for 18 (or more) years.”