CZ’s Pardon Signals Binance’s Comeback — and the Growing Prospect of a Stronger Japan Expansion

President Donald Trump has granted a presidential pardon to Changpeng “CZ” Zhao, founder of the cryptocurrency exchange Binance — a move that marks a symbolic shift in U.S. crypto policy from regulation to promotion.

The pardon, issued after Trump’s return to office, comes for a figure convicted under the Biden administration. It represents more than a personal redemption; it signals a broader policy realignment in Washington toward fostering the digital asset industry.

Immediately following the announcement, CZ posted on X that he would “do everything to make the United States the capital of crypto.” The statement hints at Binance’s renewed ambitions to compete head-on with Coinbase, the largest U.S. exchange, and to reclaim its position at the center of the global crypto landscape.

CZ was convicted in 2023 for violating anti–money laundering laws, receiving a $50 million fine and a four-month prison sentence. Binance itself paid $4.3 billion in penalties and effectively halted its global operations in the U.S. market. While the pardon does not cancel those financial penalties, it clears CZ’s criminal record—removing a major obstacle to Binance’s potential return to the American market.

The decision is also expected to ease regulatory barriers for Binance when reapplying for crypto licenses and banking relationships around the world. Current CEO Richard Teng commented that the company is “building the next chapter focused on trust, lower fees, and innovation,” signaling a new phase of global re-expansion.

Beyond policy, the move carries political undertones. Binance has been a key backer of World Liberty Financial (WLFI)—a crypto venture linked to Trump’s family—and is believed to maintain a strategically close relationship with the Trump administration. Observers suggest that the pardon was influenced not only by lobbying efforts from the crypto industry, but also by a coordinated alignment between Binance and the Trump campaign.

Signs of Binance’s resurgence are now reaching Japan. In the fall of 2025, Binance Japan entered into a strategic capital and business alliance with PayPay, one of the country’s largest cashless payment platforms.

With more than 70 million domestic users, PayPay is a dominant player in Japan’s digital payment ecosystem. If its extensive network is combined with Binance’s blockchain technology, the “mainstreaming” of crypto in everyday life could accelerate rapidly.

The two companies plan to first enable users to buy and sell cryptocurrencies on Binance Japan using their PayPay balance. Over time, this collaboration could expand in several directions—such as using crypto for real-world retail payments via PayPay, enabling cross-border remittances through blockchain, or developing inflation-hedged payment systems linked to stablecoins.

The partnership carries symbolic importance. It represents a bridge between Japan’s everyday financial infrastructure and a once “closed” crypto ecosystem, opening the door for millions of users to engage with blockchain without even realizing it. In practical terms, it could mark the beginning of a new financial experience in Japan—one where blockchain operates seamlessly beneath the surface.

A Pardon That Could Mark a New Beginning

Critics have dismissed CZ’s presidential pardon as a political trade-off. Yet it’s also true that the heavy-handed regulatory and prosecutorial pressure of recent years had begun to stifle innovation within the crypto industry.

Regulation and innovation are not inherently contradictory. Transparency, AML/CFT compliance, and accountability are essential for earning public trust—but excessive restrictions risk undermining competitiveness in a fast-moving global market.

Whether Binance can reclaim a central role in the U.S. and Japanese markets will depend on its ability to rebuild trust with society. Collaborations like the one with PayPay—integrating blockchain into existing, mainstream infrastructure—could redefine crypto not as a speculative asset, but as a cornerstone of future finance.

As the industry enters this new phase, the key question becomes: What does it mean to build technology that earns trust? The next chapter of crypto will hinge on how responsibly that question is answered—and on the new value such trust can create.

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