CZ Permanently Barred from Managing Binance, Retains Voting Rights

Binance has confirmed that its co-founder, Changpeng Zhao (CZ), is permanently barred from any involvement in managing the crypto exchange. In a statement provided to CryptoSlate on September 6, a Binance spokesperson clarified:

“Under the terms of the agreement, CZ is prohibited from any present or future involvement in operating or managing the business.”

Contrary to earlier reports suggesting CZ could return to Binance after three years, CEO Richard Teng confirmed to Axios that the ban is permanent, preventing Zhao from ever resuming a leadership position at the company.

However, despite this restriction, CZ remains the largest shareholder of Binance, owning around 90% of the company. This significant ownership grants him considerable influence over the firm’s operations, including the right to vote on important decisions, nominate directors, and even replace the CEO if necessary.

CZ has stated that he has no plans to take on executive roles in other companies. Instead, he intends to focus on investing in emerging sectors such as blockchain, artificial intelligence (AI), and biotechnology. Additionally, he has launched Giggle Academy, a non-profit educational platform aimed at addressing disparities in access to formal education, particularly in underprivileged communities.

Zhao co-founded Binance in 2017 and led it to become the largest cryptocurrency exchange globally by trading volume. He stepped down as CEO in November 2023 after pleading guilty to a money laundering charge in the United States. Following his sentencing, Zhao served four months in prison and is expected to be released later this month.

Kazakhstan Licensing Progress

On September 6, Binance announced that its subsidiary in Kazakhstan had received full regulatory approval from the Astana Financial Services Authority (AFSA). This approval brings Binance Kazakhstan closer to becoming the first fully regulated Digital Asset Trading Facility (DATF) operator in the country.

The licenses will enable Binance Kazakhstan to operate a virtual asset trading platform, offer investment services, and provide custody solutions for virtual assets under full regulatory conditions. The approval followed a rigorous review by the regulator, ensuring compliance with the AIFC Digital Asset Activities, Conduct of Business Rules, and Anti-Money Laundering (AML) laws, among other regulations.