Cardano's Hoskinson Reflects on Binance CEO's Departure, Foresees New Era in Crypto Regulations
Summary:
Cardano's founder, Charles Hoskinson, commented on the departure of Binance CEO, Changpeng Zhao, stating it represented "the dawn of a new age" in a recent YouTube video. He argued that the crypto world is caught between increasing global multipolarity and the weaponization of the U.S financial system, pressuring entrepreneurs to either comply with regulations or develop entirely permissionless protocols. Despite upcoming challenges, Hoskinson is optimistic about the power of crypto entrepreneurs, mentioning the Midnight network as a potential solution to regulatory issues.
In a YouTube broadcast on November 22, Charles Hoskinson, the founder of Cardano, commented on the recent departure of Binance CEO, Changpeng "CZ" Zhao from the exchange. He asserted this development symbolizes "the dawn of a new age". He contended that entrepreneurs must either align themselves with regulations or design entirely permissionless systems immune from regulatory oversight.
Hoskinson, in his broadcast, characterized CZ as embodying a group of pioneering crypto entrepreneurs who pushed for rapid expansion and innovative strategies. Recalling the inception of crypto, when Bitcoin transactions were conducted manually through spreadsheets and transacted via PayPal, which constituted the "initial innovation wave". The next phase surfaced with Binance and CZ in 2017, who rapidly became a formidable force in the crypto realm. Hoskinson praised CZ highly, declaring him "one of the leading entrepreneurs of our era," adding that his exchange facilitated transactions worth trillions of dollars.
Yet, Hoskinson cautioned that the world is evolving and entrepreneurs can no longer sustain centralized systems without adherence to regulatory standards. This transformation is due to what he claimed to be a "weaponization" of the U.S. financial system, making it intolerant of any attempts to create markets that permit unfriendly nations to engage in transactions. As the world is becoming multipolar, with many nations challenging this U.S.-dominated model, crypto is finding itself stuck in the middle, leading to scenarios such as the Binance plea agreement.
Hoskinson argued that, in spite of this, the regulatory pressure of the U.S. government on crypto services, including potential constraints on external wallets, would not stymie entrepreneurial creativity and power. He proposed that solutions such as the Midnight network, intended to validate transactions via an algorithmic law, could potentially resolve some of the regulatory hurdles facing crypto.
On November 21, CZ and Binance accepted a plea deal from the U.S. Justice Department pertaining to criminal charges of violating the U.S. Bank Secrecy Act. As part of he deal, CZ departed as CEO and posted a $15 million bond to the U.S. District Court to secure his release. His sentencing is slated for February 23, 2024. In his video, Hoskinson described CZ as both "a friend" and "a decent person".
Published At
11/22/2023 7:31:34 PM
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