--- title: Why Binance's settlement is a positive signal for digital assets description: "Binance takes a large punch from the SEC, leaving them bruised, but alive\nBinance’s labyrinthine operational shady dealings have long been crypto’s ‘known unknown’.\n\nFor that reason, news that the company has been landed with one of the largest corporate penalties in US history came as no surprise. The crypto industry has been aware its largest exchange has been operating illicitly for years. Binance turned a blind eye to its legal obligations for KYC / AML, enabling the potential for funds to flow to terrorists and other criminals through its platform. This Tuesday, the industry breathed a sigh of relief as Binance took their hit: $4.3bln fine, CZ the CEO stepping down, with an expectation of sentencing later. We are pleased action has finally been taken and believe Binance’s settlement with US regulators is a long-term positive development for a number of reasons." image: https://blog.syzgroup.com/hubfs/RB_Binance.png --- [![Syz Private banking](https://blog.syzgroup.com/hs-fs/hubfs/Logo.png?width=140&name=Logo.png "Syz Private banking")](https://www.syzgroup.com/fr) ## **Thinking** out loud [Subscribe](https://25733253.hs-sites-eu1.com/newsletter-signup?hsLang=en) [![Contact Us](https://hubspot-no-cache-eu1-prod.s3.amazonaws.com/cta/default/25733253/3d762f49-4e71-4f99-97b1-bf6781ef3da2.png)](https://hubspot-cta-redirect-eu1-prod.s3.amazonaws.com/cta/redirect/25733253/3d762f49-4e71-4f99-97b1-bf6781ef3da2) - [OUR SERVICES](https://www.syzgroup.com/en/private-banking) - [ABOUT SYZ](https://www.syzgroup.com/en/about/welcome-to-syz) - [CAREERS](https://www.syzgroup.com/en/careers) - [PRESS](https://www.syzgroup.com/en/news) - [Blog Homepage](https://blog.syzgroup.com) - [Slow Food for Thought](https://blog.syzgroup.com/slow-food-for-thought) - [Focus](https://blog.syzgroup.com/slow-food-for-thoughts/tag/focus) - [Asset allocations Insights](https://blog.syzgroup.com/slow-food-for-thoughts/tag/asset-allocation-insights) - [Market Outlook](https://blog.syzgroup.com/slow-food-for-thoughts/tag/market-outlook) - [Swiss Perspectives](https://blog.syzgroup.com/slow-food-for-thoughts/tag/swiss-perspectives) - [Syz the moment](https://blog.syzgroup.com/syz-the-moment) - [Crypto corner](https://blog.syzgroup.com/crypto-corner) - [Syz AI Insights](https://blog.syzgroup.com/syz-ai-insights) - [Fast Food for Thought](https://blog.syzgroup.com/fast-food-for-thought) - [The week in seven charts](https://blog.syzgroup.com/fast-food-for-thoughts/tag/the-week-in-seven-charts) - [Flash](https://blog.syzgroup.com/fast-food-for-thoughts/tag/flash) - [Fixed Income Weekly](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-fixed-income) - [Equity Weekly](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) - [Global markets outlook](https://blog.syzgroup.com/fast-food-for-thoughts/tag/global-markets-outlook) - [CONTACT](https://www.syzgroup.com/en/contact-us/form) - [ENGLISH](https://www.syzgroup.com/) - [FRANÇAIS](https://www.syzgroup.com/fr) - [Slow Food for Thought](https://blog.syzgroup.com/slow-food-for-thought) - [Focus](https://blog.syzgroup.com/slow-food-for-thoughts/tag/focus) - [Asset allocations Insights](https://blog.syzgroup.com/slow-food-for-thoughts/tag/asset-allocation-insights) - [Market Outlook](https://blog.syzgroup.com/slow-food-for-thoughts/tag/market-outlook) - [Swiss Perspectives](https://blog.syzgroup.com/slow-food-for-thoughts/tag/swiss-perspectives) - [Fast Food for Thought](https://blog.syzgroup.com/fast-food-for-thought) - [Flash](https://blog.syzgroup.com/fast-food-for-thoughts/tag/flash) - [Weekly Fixed Income](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-fixed-income) - [The week in seven charts](https://blog.syzgroup.com/slow-food-for-thoughts/tag/the-week-in-seven-charts) - [Global markets outlook](https://blog.syzgroup.com/fast-food-for-thoughts/tag/global-markets-outlook) - [Weekly Equities](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) - [Syz the moment](https://blog.syzgroup.com/syz-the-moment) - [Crypto corner](https://blog.syzgroup.com/crypto-corner) - [Syz AI Insights](https://blog.syzgroup.com/syz-ai-insights) - [Our Services](https://www.syzgroup.com/en/private-banking) - [About Syz](https://www.syzgroup.com/en/about/welcome-to-syz) - [Careers](https://www.syzgroup.com/en/careers) - [Press](https://www.syzgroup.com/en/news) - [Contact](https://www.syzgroup.com/en/contact-us/form) - [English](https://www.syzgroup.com/) - [Français](https://www.syzgroup.com/fr) ## **Sign-up** for our newsletter This website uses cookies to enhance user navigation and to collect statistical data. 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If you made a mistake, please change here USA Country Switzerland Canada: Other than Ontario, Quebec, Alberta Canada: Ontario, Quebec or Alberta USA Other country Language Language English French German Italian I confirm Legal information This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. [Crypto](https://blog.syzgroup.com/crypto-corner/tag/crypto) ### Why Binance's settlement is a positive signal for digital assets Binance takes a large punch from the SEC, leaving them bruised, but alive Binance’s labyrinthine operational shady dealings have long been crypto’s ‘known unknown’. For that reason, news that the company has been landed with one of the largest corporate penalties in US history came as no surprise. The crypto industry has been aware its largest exchange has been operating illicitly for years. Binance turned a blind eye to its legal obligations for KYC / AML, enabling the potential for funds to flow to terrorists and other criminals through its platform. This Tuesday, the industry breathed a sigh of relief as Binance took their hit: $4.3bln fine, CZ the CEO stepping down, with an expectation of sentencing later. We are pleased action has finally been taken and believe Binance’s settlement with US regulators is a long-term positive development for a number of reasons. [![Richard Byworth](https://blog.syzgroup.com/hubfs/1670147059272.jfif)](https://blog.syzgroup.com/crypto-corner/author/richard-byworth) [**Richard Byworth**](https://blog.syzgroup.com/crypto-corner/author/richard-byworth) Managing Partner, Syz Capital **Wednesday, 11/29/2023** | - [![Pdf](https://blog.syzgroup.com/hubfs/pdf%20(1).png)](https://blog.syzgroup.com/hubfs/CryptoCorner_231129_Binance.pdf?hsLang=en) - - - - ---   Firstly, it allows for the industry to move forward as institu-tional adoption accelerates and new exchange and custody alternatives emerge. The settlement also diminishes the systemic risk of the largest liquidity crypto exchange being taken out. The replacement CEO is a former regulator and marks a potential for a fresh start for the platform to do things the right way. The saga also underlines the demand for Bitcoin. Many com-mentators had previously forecasted that Bitcoin could crash if Binance began to wobble. But in the face of the settlement, Bitcoin has demonstrated impressive resilience – after a brief dip off the years highs, just 48hours later it was back knock-ing at the $38,000 level. ---   There are two strong catalysts for the unique asset looking forward just a few months: Firstly, we believe the much antic-ipated BlackRock spot Bitcoin ETF will drive mainstream retail and institutional adoption, but more importantly it unlocks trillions of dollars of 401k money. Even a few basis points implies tens of billions in inflows for an already scarce asset that keeps getting scarcer. To that point, the second seismic demand driver is the next bitcoin ‘halving’ in April 2024. The total supply of bitcoin is capped at 21 million, and as of now, over 19.5million bitcoins have already been mined, leaving less than 1.5million yet to be issued. Bitcoin’s protocol implements a mechanism known as halving, which progres-sively reduces the number of new coins introduced with each new block, meaning that that 1.5million will take another 117 years to be issued. ---   This is the first time in bitcoin’s history that we approach a halving with less bitcoin available on exchanges than the pre-vious halving. Exchange balances are approximately 600,000 bitcoin less than four years ago. On top of that a further 1.3mln bitcoin have been issued over that period. A quick back of the envelope calculation shows that 1.9mln bitcoin have been removed from liquid circulation in four years, we are at 3-4% adoption, less than 1% adoption by corporate balance sheets, and less than 1% adoption by nation states. And only 1.5mln bitcoin left to be mined forever. All this against a backdrop of traditional financial market players creating a bridge into the industry. Banks the world over have been creating trusted third-party custody alter-natives, and trading services. Swiss private and cantonal banks have been active here with names such as Syz, Maerki Bauman, Zug Kantonale bank and St Gallen Kantonale bank all providing services to their clients. --- Meanwhile, in the hedge fund space, the recent volatility is providing an abundance of alpha for those employing vola-tility arbitrage, futures arbitrage, mean reversion and market making strategies. This is opening a door for traditional market investors to dip their toe into an asset class bearing the same opportunities that were harvested in the golden age of hedge funds in the eighties and nineties presented through diversified, highly diligenced vehicles like SyzCrest. We are currently living through the scaling and adoption of a new asset class, Bitcoin, alongside an emerging but volatile digital asset industry. Institutional adoption will mean plenty more short-term pain for those participants who break the rules, but this period of industry maturation will benefit the digital asset space over the long term. --- #### Disclaimer This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. Read More ## Related Articles [Crypto](https://blog.syzgroup.com/crypto-corner/tag/crypto) #### [Bitcoin as a strategic reserve asset](https://blog.syzgroup.com/crypto-corner/bitcoin-as-a-strategic-reserve-asset?hsLang=en) President Donald Trump signed an executive order relating to cryptocurrencies. The US is now one step closer to the creation of a strategic bitcoin reserve. Overview below. **[Charles-Henry Monchau](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 28/01/2025 [Crypto](https://blog.syzgroup.com/crypto-corner/tag/crypto) #### [Crypto Outlook 2025](https://blog.syzgroup.com/crypto-corner/crypto-outlook-2025?hsLang=en) "There are decades where nothing happens; and there are weeks where decades happen." - Vladimir Ilyich Lenin **[Charles-Henry Monchau](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 08/01/2025 [Crypto](https://blog.syzgroup.com/crypto-corner/tag/crypto) #### [Ethereum vs. Solana: the match](https://blog.syzgroup.com/crypto-corner/ethereum-vs.-solana-the-match?hsLang=en) Solana and Ethereum are two dominant blockchains in the crypto sector, each boasting robust DeFi ecosystems and a plethora of diverse applications. The two blockchains are often seen as competitors. How do they compare? **[Charles-Henry Monchau](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 26/11/2024 ## Straight from the Desk # Syz the moment Live feeds, charts, breaking stories, all day long. [Discover more](https://blog.syzgroup.com/syz-the-moment?hsLang=en) ## **Thinking** out loud Sign up for our weekly email highlighting the most popular posts. 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