Published on November 22, 2023 12:50 GMT+00:00edited on November 22, 2023 12:59 GMT+00:00

Crypto exchange Binance reaching a settlement with U.S. prosecutors on Tuesday is a good thing for its business and the crypto sector, according to JPMorgan.

"We see the prospect of settlement as positive as uncertainty around Binance itself would subside and its trading and BNB Smart Chain business would benefit," JPMorgan's analysts led by Nikolaos Panigirtzoglou told The Block. "For crypto investors the prospect of settlement would see the elimination of a potential systemic risk emanating from a hypothetical Binance collapse."

Under a comprehensive settlement with U.S. agencies on Tuesday, Binance and its co-founder Changpeng "CZ" Zhao pleaded guilty to anti-money laundering and U.S. sanctions violations. Binance agreed to pay $4.3 billion in one of the largest corporate settlements …