Changpeng Zhao, the CEO of Binance, says going public could be on the cards for the US chapter of the cryptocurrency exchange that has found itself in regulatory crosshairs across the globe
CZ said that the plan is to change its business model in the US so that instead of operating as a tech startup, it pivots to become a financial service provider.
The Binance chief revealed this during REDeFiNE Tomorrow 2021, where he averred that the exchange was working on how to improve compliance, including hiring or working closely with former regulators.
Asked about the potential for an initial public offering (IPO), he responded affirmatively, adding that the ‘IPO route’ is a possibility given the exchange is already “setting up those structures to make it easier for an IPO to happen.”
“Binance US is looking at the IPO route. Most regulators are familiar with a certain pattern [like] having [an] HQ or having [a] corporate structure,” he added.
The news comes at a time when the cryptocurrency exchange has continued to face increased regulatory scrutiny from various financial regulators across the globe.
Across its businesses, Binance has faced scrutiny in the UK, the US, Singapore, Germany, and Italy, among other jurisdictions.
However, Zhao also acknowledged that communication with regulators has not been the exchange’s “strong suit.” According to him, this might improve if regulatory bodies localised the communication process.
While the exchange looks to go public by taking the necessary steps, CZ has tamed expectations by stating that there is “no direct plan for IPO right now.”
Instead, the exchange will continue to prioritise market growth, especially away from active trading and into the burgeoning space of crypto gaming, decentralized finance (DeFi), and NFTs.
Binance US launched its operations in the United States in 2019.