According to the CEO, Changpeng Zhao, Binance will face more regulations in the future he added that the business has the mindset of shifting from a tech startup to a financial service.
Despite Binance’s ongoing regulatory crackdown, Binance US, a US-based cryptocurrency exchange that operates independently of Binance, is trying to go public.
On Friday, Changpeng Zhao, the founder and CEO of the global exchange Binance, spoke at the blockchain virtual summit REDeFiNE Tomorrow 2021 about the company’s current regulatory challenges and future goals.
Binance will face tough regulations in the future, according to the CEO, who noted that the business is “in the mindset of moving from a digital startup to a financial service.” Binance has been ramping up its compliance efforts, according to Zhao, including hiring former regulators.
Zhao acknowledged that cooperating with authorities has not been the company’s “strong suit,” emphasizing the urgent need to localize compliance messaging.
Despite its limited success in engaging with global regulators thus far, Binance does not rule out the prospect of a Binance US IPO in the future, as the exchange is exploring options for an IPO (IPO), CZ made the following declaration:
“Binance US is looking at the IPO route. Most regulators are familiar with a certain pattern, or having headquarters, having corporate structure. But we are setting up those structures to make it easier for an IPO to happen.”
Binance US is a separate organization from Binance, which licenses technology and receives branding support from the global exchange. It was launched in 2019.
Brian Brooks, the former acting comptroller of the US Office of the Comptroller of the Currency, joined Binance US as CEO early this year to help the exchange compete with Coinbase and expand across the US.
Recently, worldwide regulators, including those in the United States, have escalated their attention to Binance. Binance is being investigated by the US Department of Justice and the Internal Revenue Service for possible unlawful trading activity involving US users, as previously reported.
Binance was apparently the subject of a US Commodity Futures Trading Commission inquiry after purported trades by US customers in March.
