Pardon CZ How to Reshape the encryption Ecosystem? Three Things You Need to Know

10/29/2025, 8:44:01 AM
With Changpeng Zhao (CZ) being pardoned, the encryption market may welcome a new chapter of compliance and expansion. This article interprets the significance of Pardon CZ for the industry, for you, and for investment from three key perspectives.

Key Perspective One: Changes in Regulatory Landscape

The amnesty CZ is part of the regulatory signals. Here are a few key points that beginners should pay attention to:

  • The pardon from the US president to CZ is a “completely unconditional” pardon.
  • Previously, Binance, where CZ is located, was fined heavily for failing to establish effective anti-money laundering procedures.
  • The parliament has begun to push a new bill aimed at prohibiting officials from owning or creating encryption assets.

The above means: regulation has not disappeared but may enter a “new normal”—not just suppression, but possibly conditional release. Beginners need to understand this: compliance may be the main theme of the next stage.

Key Perspective Two: Opportunities and Challenges for Market Participants

For exchanges, project parties, and ordinary investors, the opportunities & challenges brought by Pardon CZ:

Opportunity:

  • Trust rebuilding may be on the horizon for the Binance ecosystem (such as BNB, BNB Chain). An industry analysis suggests that a pardon could provide “rocket fuel” for BNB.
  • If regulations loosen, exchanges may expand and market participants could be bolder in their strategies.

Challenge:

  • Regulatory easing does not mean no rules. The market may enter a “new rules - new game” phase. If platforms ignore compliance, the risks remain high.
  • Investors may chase higher prices due to “good news,” but it may not have substantial support. The relief is instantaneous, but price movements and risk release may be slower.

Key Perspective Three: How Ordinary Investors Should Respond

As a beginner, you can refer to the following steps:

  • Do your homework: Understand whether the project you are investing in has a compliant track record and whether the team background is sound. Don’t blindly follow the Binance ecosystem just because CZ has granted amnesty.
  • Position control: Even positive news may be affected by market expectations that have already been reflected or by other issues. It is recommended not to invest heavily.
  • Set stop-loss and target: Clearly define the maximum loss you are willing to bear, and set a reasonable profit target. The volatility is greater than you think.
  • Pay more attention to regulatory dynamics: the amnesty event is a node, and subsequent bills and regulatory policies may be introduced one after another. Keeping an eye on these changes is more important than just focusing on prices.

Summary: New Opportunities in the Encryption World After Pardon

The “Pardon CZ” incident is like an earthquake in the encryption industry, which may trigger a new state for regulation, the market, and project parties. For newcomers, this is both an opportunity and a test: if you can understand “why pardon” rather than just “there is a pardon,” it will help you avoid blind spots and seize real opportunities in the future encryption market. Remember: good news does not mean zero risk, and trends are not guarantees. Keep learning, diversify risks, and act cautiously.

* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.