Despite regulatory pressure, Binance’s US division plans to enter the stock market through a public offering.
These plans were announced by Binance founder and CEO Changpeng Zhao at the REDeFiNE Tomorrow 2021 virtual conference dedicated to blockchain. Despite the current difficulties with regulators, Binance is preparing to make the transition “from a technology startup to a financial service.”
Zhao admitted that Binance’s current engagement with regulators is not the exchange’s “strength”. However, he does not rule out the possibility that Binance US will go public in the future.
“Binance US has already begun to explore how it can enter the stock market through an IPO. Most regulators operate in a familiar pattern. They need the organization to have a headquarters and corporate structure. We are already creating such structures to facilitate the IPO, ”Zhao said.
He is confident that in this regard, the regulatory requirements for Binance will become even more stringent. However, Zhao said that Binance is actively taking steps to comply with all necessary requirements. To make this easier, the exchange is hiring former regulators. So, on May 1, former Director of the Office of the Comptroller of the United States Currency (OCC) Brian Brooks took over as CEO of Binance US to help the exchange compete with the Coinbase platform.
Binance has been receiving a lot of regulatory scrutiny lately, which has a negative impact on its partnership with banks. Recently, the UK bank NatWest has completely restricted deposits from its credit and debit cards on Binance. Barclays Bank has taken similar actions, and last month even the crypto-friendly bank Silvergate stopped serving the exchange.
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