Binance already has a holding company with a new location soon to be announced according to the CEO Changpeng Zhao who noted that the exchange has abandoned its decentralized philosophy in order to get a license from regulators so let’s read more today in our Binance news.
Binance already has a holding company status and the exchange will announce the location of the holding company soon according to Zhao. Speaking at the Financial Times Crypto and Digital Asset Summit, Zhao asked where the holding company sits in a traditional corporate structure and he replied that Binance already has that and it will announce the location soon. Zhao added:
“If you want a centralized exchange, which Binance.com is, and you want to have access to traditional banking […] you have to sort of backtrack a bit and follow the rules in the traditional financial systems. You have to have a corporate headquarters, you have to have a parent company, and you have to get licenses; the regulators have a certain structure that you expect.”
Zhao argued that the company had no headquarters and stated that everybody’s definition of a headquarters is much different. The regulators appear unimpressed by the Binance argument which is business decentralization as in 2021, the Japanese, Dutch, and Italian regulators issued consumer warnings about Binance and took steps to limit the exchange services in their territory. The UK Financial Conduct Authority went so far as to argue that the Binance UK entity was not capable of being supervised and refused to provide basic information about the busienss. CZ conceded that the exchange changed its tactic:
“When we first started, we wanted to embrace the decentralized philosophy of no offices, no headquarters, no corporate entities; none of those are needed if you run a pure crypto exchange. But as soon as you want to get licenses, you have to have what we call the traditional structures, which we do now.”
Binance shifted towards a traditional corporate structure and spoke at the fT Summit, noting:
“We have extended corporate structure now; that’s a prerequisite for getting licenses.”
Binance has licensed entities in Abu Dhabi, Bahrain, and Dubai with a G7 country in Europe and one in the US that is set to come soon.
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