Changpeng Zhao Mulls Over IPO And New Ceo For Binance US

Binance, the world’s fastest-growing, and extremely popular cryptocurrency exchange platform, has faced certain clashes with regulators around the world. Regulators from countries like the UK, Italy, Japan, Thailand, Poland, the US &c. have scrutinized the company’s regulatory policies and raised questions and skepticism regarding its compliance with the regulatory norms. Lately, the CEO of Binance, Chanpeng Zhao has been suggesting launching initial public offerings (IPO), along with a new CEO as he wants to step down from his role.

IPO Launch by Binance US

Being stuck with a string of regulatory issues, one particular idea being pondered upon by the company is the possibility of a future Initial Public Offering (IPO) in the United States, as revealed by Chanpeng while speaking at the “Redefine Tomorrow” event organized by SCB 10X, the venture arm of Thailand’s Siam Commercial Bank. After Coinbase’s listing on Nasdaq earlier this year, the US provides an ecosystem for crypto companies to go public, according to Chanpeng Zhao. The many US-based Crypto companies like Gemini, Kraken, and Circle, are looking increasingly likely to take this route as well.

We haven't always got everything exactly right": Binance CEO speaks out
Chanpeng Zhao hints via his statements that he is planning to bring about structural change and launch IPO of Binance US, http://Tricker NEWS

This comes as a shift in Chanpeng Zhao’s stance, though, as previously, he had expressed Binance’s intentions of taking a crypto native path forward, that is, by expanding the utility of its ‘utility token’ BNB, instead of following the path of traditional IPO.

However, he mentioned that the IPO plan is ‘not 100% fix yet’ and isn’t immediate, as the company would need to go through structural changes to comply with regulations including physical structures for headquarters, an office, or a legal entity. Once these structures are in place, Zhao insists, it becomes easier for an IPO to happen. But right now, the company is in the earlier stages.

This lack of a traditional centralized regulatory structure caused the clash of the inconvenience of operation of Binance with several countries. Amidst the expressions of skepticism, its operations continued in several countries such as Japan. Until earlier this year, in the UK, Binance has been banned and lost control over its activities in the geopolitical boundaries of the country.

With the rising inspection of the cryptocurrency sector growth across the world amid worries over consumer protection and use of digital protection for money laundering and other illegal happenings, authorities have targeted Binance, which Chanpeng Zhao claims have grown up very quickly and they haven’t always got everything exactly right. He went on to ensure that the company is making steps forward in the right direction, through actions such as hiring traditional compliance people as well as ex-regulators, and primarily bring home a new Chief Executive Officer (CEO) with a ‘strong regulatory background’. Thus, Chanpeng Zhao plans to step down from his current role in the next two to five years.

Free Cryptocurrency Will Make Our World Better' – Binance CEO - Sputnik  International
Rapidly grew into the world’s most popular crypto exchange platform, Binance will be updated as per the new era of regulators norms, http://Sputnik News

Citing that the crypto space is heavily regulated, Chanpeng Zhao has also stressed the fact that Binance needs to make a “big pivot from a technology start-up to a financial services company”. He also went on to highlight that one of Binance’s main drawbacks is communicating clearly with regulatory entities, and Chanpeng Zhao said they are working to strengthen this aspect to ensure smoother operations for the company. 

Binance has long been subject to global regulatory scrutiny, with an increased focus in recent weeks. Government agencies in many countries around the world have either issued warnings or taken action against the exchange, apparently for the company’s alleged failure to acquire licenses and operate in their countries. The U.S. Justice Department, the Internal Revenue Service, and the Commodity Futures Trading Commission have all started scrutinizing Binance for its alleged breaches and infringements. And while the company claims that it is ready to face these challenges, Chanpeng Zhao has also asserted that Binance is not going to take its eyes off from the big opportunities that deserve to be seized such as the Defi and NFT markets.

The current CEO’s claim to step down from his post to focus more on the innovation and upgrading of the system seems to be an extremely foregoing act. Yet, the company needs to update its policy structures as per the recent development to run in the market smoothly. Cryptocurrency system has been cracked down gradually and consistently by regulators around the world and the plan of modification of this popular cryptocurrency exchange platform is a result of the same.