“I don’t think I’m the best person to lead that effort. I think having somebody with a very strong regulatory background is actually better said Binance CEO Changpeng Zhao while talking about keeping up with regulations.
Binance’s CEO and founder, Changpeng Zhao, has stated that the largest cryptocurrency exchange will collaborate with local regulators as it creates regional headquarters.
According to a Reuters story published on Tuesday, Zhao, better known as CZ, implied that Binance would abandon its decentralized approach to finance and that the exchange would work with regulators as it grew.
CZ stated, “We want to be licensed everywhere.” “We’re going to be a financial institution from now on.”
Zhao stated again that if someone “with a good regulatory background” becomes available, he might be willing to step aside as CEO.
CZ remarked last week at an SCB 10X virtual summit that he considers himself a software entrepreneur, whereas someone familiar with regulations could be more suited to head the crypto exchange as it transitions “to structures more easily understood by regulatory compliance.”
“I’m searching for a senior executive with a solid compliance and regulatory expertise to head the entire organization,” she says “CZ went on to say:
“I’ve led the company for four years and it’s good, and we’ve got to go through this pivot […] I don’t think I’m the best person to lead that effort. I think having somebody with a very strong regulatory background is actually better.”
The remarks came just days after CZ revealed that Binance’s US subsidiary was looking into “the IPO route” for a public offering in the US.
A corporation established in the United States that operates separately of Binance, the world’s largest cryptocurrency exchange. Local regulators have scrutinized the United States.
According to reports, the Internal Revenue Service and the Justice Department are investigating charges that Binance engaged in illicit trading activity for US-based individuals.
As part of its inquiry, the Commodity Futures Trading Commission allegedly made similar charges against the crypto exchange.
The CFTC claims from March were denied by CZ, who said at the time that the report had “no teeth.” Binance has stated that it takes a “collaborative approach in engaging with regulators around the world” and that compliance requirements are treated carefully “Taken very seriously.”
Given that Binance CEO Changpeng Zhao earlier stated that the crypto exchange has no headquarters, CZ’s apparent intention to build regional headquarters is quite shocking.
When rumours surfaced in November 2019 that authorities raided Binance’s Shanghai operations, the exchange denied that such offices existed.
Despite the fact that CZ now resides in Singapore, the exchange has ties to China, Japan, Malta, Seychelles, and the Cayman Islands. Because some staff live in different countries, it’s unknown where Binance calls home at the time of writing.