- Binance CEO Changpeng Zhao has revealed that the exchange US arm is considering an initial public offering (IPO).
- As part of the exchange compliance effort, Binance has added to its compliance team.
Binance founder and chief executive officer Changpeng Zhao, popularly known as CZ, has hinted that Binance US is considering an initial public offering (IPO). CZ mentioned the Binance US IPO plans while speaking at the blockchain virtual summit, REDeFiNE TOMORROW 2021.
Binance US is considering IPO
Hints on Binance US IPO plans came amid the ongoing regulatory issues the exchange has been facing over the past weeks. The UK Financial Conduct Authority (FCA) issued a consumer warning against Binance Markets Limited. Saying that the group is not allowed “to undertake any regulated activity in the UK.” Apart from the UK, Binance also received warnings from Ontario, Japan, Thailand, Italy, Lithuania, and South Africa. Despite the ongoing regulatory challenges, Binance remains the world’s largest spot and derivative crypto exchange.
As Binance is working on settling the regulatory hurdles the exchange is currently facing, CZ has revealed that its US arm is now setting up structures to fit all regulatory requirements for an IPO. The exchange founder noted:
Binance US is looking at the IPO route. Most regulators are familiar with a certain pattern or having headquarters, having a corporate structure. But we are setting up those structures to make it easier for an IPO to happen.
Speaking further, CZ also mentioned some of its regions across the globe with potential. CZ said that each region has its distinct strategy. He specifically said that he sees “huge potential for growth in Asia and SEA.” Also, he stated that Africa is a blank-slate for growth.
Furthermore, CZ said that Binance will not remain a tech startup forever. He revealed that the exchange plans to transit from to a financial service. In addition, he assured that Binance is focused on operation as an accountable financial institution. CZ explained during the summit:
[Cryptocurrencies] are very much understood as a financial asset type, we just got to treat it as such, and we have got to run the company as such.
Binance increases compliance effort
Binance’s founder said that it has added to its compliance team while speaking at the exchange’s 4th anniversary last week by 500 percent. According to CZ, Binance will increase the team further by an additional 1000 percent by the end of 2021. In addition to Binance’s compliance effort, the exchange has hired Jonathan Farnell as its new Director of Compliance. Farnell was a board member and head of compliance at financial services company eToro.
Commenting on hiring the new executive, Binance said in a press release that Farnell would help develop the exchange’s “regulatory products landscape.” Following his appointment as the Binance director of compliance, Farnell declared:
In putting users first, Binance has a culture that fosters innovation and promotes the creation of game-changing products. My efforts will focus on helping Binance develop these and driving further regulatory compliance in Europe and the development of regulated products.