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Charles Hoskinson, the founder of Cardano, has commented on the resignation of Changpeng Zhao (CZ) as the CEO of Binance, one of the world’s leading cryptocurrency exchanges. Hoskinson sees this as a significant shift in the crypto industry and predicts increased regulatory scrutiny in the sector. He believes that CZ’s departure marks the end of an era and signifies a deeper transformation within the industry.Unlike other high-profile departures in the crypto sphere, CZ’s resignation is not due to allegations of fraud but rather stems from broader issues. According to Hoskinson, CZ’s approach to opening markets inadvertently facilitated activities by entities adverse to American interests. This has led to increased scrutiny and a shift in operational dynamics at Binance.Hoskinson predicts that Binance will continue to operate but under closer observation by the US government. He anticipates that the exchange’s decisions will align more closely with directives from US regulatory bodies, particularly the Treasury Department. This reflects a broader trend in the cryptocurrency sector, where regulatory compliance is becoming increasingly significant.In light of these industry changes, Hoskinson highlights Cardano’s approach. He emphasizes that Cardano has been innovating and focusing on integrity and regulatory compliance. He introduces the “Midnight protocol,” a strategy by Cardano to balance its decentralized ethos with regulatory necessities. This approach aims to ensure data confidentiality while adhering to regulatory standards.Hoskinson also expresses concerns about potential regulatory impacts on liquidity providers and non-custodial wallets, including popular platforms like Metamask. He believes that regulatory engagement in the crypto industry is growing, aiming to balance innovation with legal and security considerations.The cryptocurrency industry is at a crossroads, facing increased regulatory oversight. Companies in the space must navigate these changes carefully. Hoskinson suggests a future where crypto businesses must choose between full regulatory compliance or developing permission-free, unregulated protocols.The evolution of Binance under its new leadership and the industry’s response to heightened regulatory scrutiny will shape the future of cryptocurrency. Hoskinson’s insights provide a valuable perspective on these developments, highlighting the importance of adapting to regulatory changes while preserving the fundamental decentralization principles of the crypto world.