BitMEX founder Arthur Hayes raises important concerns about the arbitrary nature of punishments in the United States, using the recent Binance fine as a prime example.
The Rise of Binance: A Threat to the Establishment
Hayes highlights the rapid ascent of Binance, which has become the largest centralized trading venue for cryptocurrencies. He notes that its former CEO, Changpeng Zhao (CZ), went from relative obscurity to being one of the wealthiest individuals globally within a decade. Binance provided a gateway for millions of people worldwide to trade cryptocurrencies, offering them newfound financial opportunities and the ability to participate directly in the crypto revolution. The intermediaries like Binance posed a threat to the traditional financial and political powers, as they allowed individuals to bypass the established institutions.
“Did any Too Big to Fail bank CEOs get criminally prosecuted for precipitating the worst global financial crisis since the 1930s Great Depression? Nope, they got a free pass because to prosecute them would threaten the banking system,” says Hayes.
Despite major banks involved in significant financial crises or money laundering scandals facing minimal consequences, Binance faced severe penalties. Last week, Binance and Changpeng Zhao pleaded guilty to criminal charges related to anti-money laundering and violations of US sanctions. However, the company will be able to continue its operations after reaching a comprehensive agreement with the US Department of Justice. Changpeng Zhao stepped down as CEO, and Binance will pay a substantial $4.3 billion fine. Additionally, Changpeng Zhao agreed to personally pay $200 million in fines.
The Path Ahead: Consider Investing in Cryptocurrencies
Hayes encourages readers to view the treatment of CZ and Binance as an impetus for investing in cryptocurrencies, particularly Bitcoin (BTC). Witnessing the immense energy directed towards penalizing CZ and Binance should prompt individuals to explore the potential of cryptocurrencies.
Furthermore, Hayes emphasizes the importance of taking control of one’s cryptocurrencies by using wallets where users hold the private keys. This empowers individuals to have sole ownership and access to their digital assets.
Looking at the broader geopolitical landscape, Hayes points out the improving relations between China and the United States. He predicts that China’s monetary policies, characterized by increased money printing, will contribute to the growth of the crypto bull market.
