Binance US mulling IPO, may need 'structural changes' to meet regulatory norms
Binance, one of the largest cryptocurrency exchanges, has faced a string of regulatory issues in several countries including Thailand, Japan, Germany, Italy, UK and the US.
July 26, 2021 / 10:57 AM IST
Binance CEO Changpeng Zhao (CZ) [Image Source: Coindesk]
Cryptocurrency Exchange Binance is mulling an initial public offering (IPO) in the US. Binance CEO Changpeng Zhao (CZ) reportedly revealed the possibility of a future IPO while speaking at the "Redefine Tomorrow" event organised by SCB 10X the venture arm of Thailand's oldest Siam Commercial Bank.
However, he said the IPO plan “is not 100% fixed yet.”
Zhao said IPO plans aren’t immediate as the company will need to go through structural changes to comply with regulations including headquarters, an office, or a legal entity, The Block reported citing Zhao.
“We are setting up those structures," Zhao said. "Once those structures are in place, you may make it easier for an IPO to happen. So that's not out of the question. But right now, we are still in the early stages."
Binance, one of the largest cryptocurrency exchanges, has faced a string of regulatory issues in several countries including Thailand, Japan, Germany, Italy, UK and the US. Italian watchdog had issued a statement stating Binance Group companies were not authorised to provide investment services and activities in Italy, even via the exchange's main website which had offered information in Italian on derivatives and tokenised versions of stocks.
With scrutiny of the cryptocurrency sector growing across the world amid worries over consumer protection and the use of digital coins for money laundering and other criminal activities, authorities have in recent months zeroed in on Binance.
"Binance has grown very quickly and we haven't always got everything exactly right," Zhao had said in a letter posted on the company website in early July. He reiterated this commitment at the event saying that the company was “hiring many traditional compliance people, also ex regulators” to improve Binance's communication with regulators, the report added.
The company is also looking for new CEO with a "very strong regulatory background,” he said. Zhao had reportedly revealed his plans to step down from the CEO position in the next two to five years.[Input from Reuters]