JPMorgan: What Happened with Binance is Positive for the Crypto Industry

According to JPMorgan analysts, the agreements between crypto exchange Binance and the US authorities are positive because they neutralize the systemic risk to the industry in the event of a hypothetical collapse of the platform.

The world’s largest cryptocurrency trading platform by trading volume agreed on November 21 to pay multi-million dollar fines to FinCEN and OFAC. In addition, its former CEO, Changpeng Zhao, stepped down and posted $175 million bail to remain at large.

Bank specialists have said:

“We see the prospect of settlement as positive as uncertainty around Binance itself would subside and its trading and its Smart Chain business would benefit.”

Richard Teng, the company’s new CEO, has said his priorities include reassuring Binance users that “they can remain confident in the financial strength, security and safety of the company.”