Changpeng Zhao: “we need a centralized organization for dialogue with regulators”

Binance exchange management is reorganizing the company into a licensed financial institution with a centralized headquarters in an attempt to improve relationships with regulators.

In an interview with The South China Morning Post, Binance CEO Changpeng Zhao talked about plans to reorganize the company to liaise with regulators. This year, the exchange faced pressure from the authorities – regulators of several large jurisdictions, including the UK, Hong Kong, Japan and Singapore, issued warnings regarding the company’s operations.

According to Zhao, the exchange has begun a dialogue with regulators in an effort to obtain their permission and distance itself from the ongoing wave of repression against the platform around the world. In an interview, he said:

“Since we have a centralized exchange, we have come to the conclusion that we need a centralized structure in order to work well with regulators. We need to have clear records of stakeholder ownership, transparency and risk control. As the largest player in the industry, we must prepare for a new reality. We are making changes to facilitate dialogue with regulators. ”

Zhao also commented on the development of government cryptocurrencies in some countries. In his opinion, these initiatives will have a beneficial effect on the cryptocurrency market and contribute to the growth of the popularity of cryptoassets.

“Once people start using central bank digital currencies domestically, they will start using bitcoin to transfer money to their friends in other countries,” he said.

Recall that recently, Binance has tightened the requirements for client verification – all new clients of the site must provide an identity card and undergo intermediate verification.