Changpeng Zhao hints Binance US is considering going public via an IPO after it set up a new structure of the company that will allow it to go public thorugh an IPO as we can see more in our latest Binance news today.
Despite its rocky relationship with the global regulators, the crypto exchange giant and its CEO Changpeng Zhao hints Binance US considers going public. CZ as the founder of the exchange made this known a the ReDeFINE Tomorrow 2021 blockchain conference and speaking on the future plans and regulatory issues, he said that the US subsidiary is looking to go public in an initial public offering. According to the CEO, the US division operates separately from binance and it is now setting up new structures that will allow it to meet regulatory requirements for an IPO:
“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.”
Binance is facing serious regulatory pressure from Financial watchdogs all across the world and the lack of a registered head office that raised plenty of questions among the members of the crypto industry could have contributed to the scrutiny from regulators. CZ said during the ConsenSys Ethereal Summer 2020 that his company doesn’t have a headquarter and according to him, not having a specific location as the main office is actually the beauty of the blockchain because Bitcoin also doesn’t have an office.
Two months ago, he reiterated his stance during the Ethereal 2021 conference saying that binance doesn’t have headquarters because he works from home and the company’s leadership team is not sitting in an office. Over the past few weeks, regulators from across the world are ganged up against the exchange and in June, the UK Financial Conduct Authority warned the exchange that it is not authorized to provide services in the country. After a few other countries like Singapore and Japan, the US also issued warnings to the exchange. Thailand’s SEC filed a criminal complaint against the company for offering crypto services with no license. The increasing regulatory pressure on the exchange led to many raise theories about whether the move is a threat to the market considering the exchange’s position in the industry or plain old FUD.
Binance’s CEO pointed out in the statement during the ReDeFINE virtual event that the company is unfazed by the scrutiny given that it doesn’t intend on staying a startup forever. According to CZ, Binance is in the mindset of shifting from a tech startup to financial services and it will be faced with heavy regulations in the near future.
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