Binance is set to face heavy regulations in the future with the mindset of shifting from a tech startup to a financial service, Changpeng Zhao said.
Binance US, a United States-based cryptocurrency exchange operating separately from Binance, is looking to go public despite the ongoing regulatory crackdown on Binance.
Changpeng Zhao, founder and CEO of the global exchange Binance, talked about its ongoing regulatory issues and future plans at the blockchain virtual summit REDeFiNE Tomorrow 2021 on Friday.
The CEO expressed confidence that Binance is set to face heavy regulations in the future, noting that the company “is in the mindset of shifting from a tech startup to a financial service.” Zhao reiterated that Binance had been aggressively increasing its compliance efforts, including hiring former regulators.
Zhao admitted that the company’s efforts to cooperate with regulators have not been the firm’s “strong suit,” pointing out the urgent need to localize compliance communications.
But despite seeing a meager success in communicating with global regulators so far, Binance doesn’t preclude a possibility that Binance US would go public one day as the exchange is seeking ways to go for an initial public offering (IPO), CZ declared, stating:
“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.”
Related: Binance in the crosshairs: Are regulators paying attention to crypto?
Launched in 2019, Binance US operates a separate entity from Binance, licensing technology and receiving branding support from the global exchange. Brian Brooks, the former acting comptroller of the United States Office of the Comptroller of the Currency, became the CEO of Binance US earlier this year to help the exchange compete with Coinbase exchange and expand across the United States.
Binance has been subject to increased scrutiny from global regulators recently, including the United States. As previously reported, both the States Department of Justice and the Internal Revenue Service have been investigating Binance for alleged illegal trading activity involving users in the United States. In March, Binance reportedly became the subject of an investigation by the U.S. Commodity Futures Trading Commission regarding alleged trades by U.S. customers.
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