The pressure on regulations is constantly increasing, and now the CEO of the Exchange has also commented on this topic Binance Changpeng Zhao, which reportedly expects the cryptocurrency space to be affected “Heavy” regulations.
Towards financial services
Changpeng Zhao (CZ) indicated that Binance, which is the world’s largest cryptocurrency exchange, along with the entire blockchain ecosystem of platforms and initiatives such as Binance Academy, Binance Labs, Trust Wallet “Binance Launchpad and Binance Chain, is set to “think”, which aims at financial services. He said this in his speech at the annual virtual summit of blockchain REDeFiNE TOMORROW 2021.
CZ did not speak alone. He joined him in the debate Tai Panich (TP), Chief Business and Investment Director SCB 10X, a Thai subsidiary Siam Commercial Bank who organized the event. They discussed how Binance could transform in the middle of incoming crypto space control. CZ commented:
“Recently, more control over regulations. It is clear that strict regulations are to be expected. Binance is in the process of transition from a technological startup to a financial service. We are stepping up compliance efforts, including hiring former regulators.
So far communication with regulators has not been our strength. The location of the communication is also necessary. “
Changpeng Zhao says cooperation is the “way”
CZ Binance finally issued a statement on its position on the recent regulatory intervention facing the exchange. In a released letter, Zhao describes how Binance is gradually adapting to regulations around the world. However, he acknowledges that Binance “didn’t always do everything right.” Zhao further stressed:
“Regulatory compliance is the way to go – especially in new industries such as cryptocurrencies. The sector still has many uncertainties. We are also aware that there are obstacles to growth. “
Binance faces long-term criticism over regulations. One such case that informed Bloomberg, happened in May, when US Department of Justice, Internal Revenue Service and Commodity Futures Trading Commission they allegedly examined Binance. The report noted that “It has not been possible to determine the specificities of what the agencies are investigating, and not all investigations lead to allegations of infringement.”
In 2019 officials banned Binance from operating in the US for regulatory reasons. Binance therefore launched together with other investors Binance.US, an independent cryptocurrency exchange registered with the United States Financial Crimes Enforcement Network in the USA due to combating financial crimes to comply with US laws and regulations.
In an interview with TP, CZ allegedly discussed potential growth opportunities for Binance, including turning to other continents and exploring various paths in the cryptocurrency space, such as decentralized finance (DeFi) and non-interchangeable tokens (NFT). Zhao says:
“I see huge potential for growth in Asia. Africa is also a clean board for development. Different strategies for different places.
Tai Panich CZ asked about the most exciting areas he sees for the growth of Binance. Zhao responded:
Active trading is not for everyone. Gaming, DeFi, NFT. Lots of potential. I am sure that there are areas that we have not explored and that are at the beginning of growth. “
When Tai Panich asked him about the potential for realization initial public offerings (IPO), Zhao noted that although it is part of the negotiations, this is not the main focus of the company now.
“CZ: Binance USA is looking at the possibility of an IPO. Most regulators are familiar with a certain pattern (having headquarters, having a corporate structure). But we are setting up these structures to make it easier to set up an IPO.
In conclusion, Zhao noted that there is currently no specific plan for IPO because they are currently focusing on development.