Matrixport predicts Binance will maintain its position as one of the top three exchanges until 2026.
With the departure of Changpeng Zhao as the CEO of Binance, analysts from Matrixport predict that the crypto exchange will have a window of two to three years before facing competition that could impact its position in the market. Matrixport, a Singapore-based crypto management platform founded by Jihan Wu, suggests that there will likely be pressure to downsize the company. As of July 2023, Binance had nearly 8,000 employees and had plans to hire more, while other crypto exchanges were reducing their workforce to optimize expenses.
The analysts also anticipate that more exchanges will improve their compliance programs and participate in surveillance-sharing agreements, particularly in anticipation of the launch of a Bitcoin exchange-traded fund (ETF) in the US market. Despite the management restructuring at Binance, the report highlights that the industry’s “whitewashing” will increase the likelihood of institutional adoption of Bitcoin, potentially positioning crypto as a safe-haven asset in investors’ portfolios.
Changpeng Zhao’s decision to step down as CEO and plead guilty to violating US anti-money laundering requirements has triggered a series of events involving US regulatory bodies, especially within the context of the settlement agreement. Under the reported settlement, Zhao will resign from his role, and Binance, which he founded in 2017, will plead guilty to charges of anti-money laundering and sanctions violations. In addition, Binance has agreed to pay fines amounting to $4.3 billion, which includes resolving civil allegations from regulators. Zhao himself has also agreed to pay a $50 million criminal fine, with the possibility of a reduction based on his agreement to pay separate civil penalties.
