Binance continues to be the world’s largest cryptocurrency, while it has faced major regulatory scrutiny as countries have begun to ban it because of its lack of ability to meet the FCA’s anti-money laundering requirements. CEO Changpeng “CZ” Zhao says that he is willing to step down as the company transitions to being a regulated financial institution.
The banning of Binance in Germany in June set the pace for other countries by giving them the ability to follow suit if they place. The UK stated that starting on June 30, Binance Markets Limited will no longer be permitted in the country. The company had planned to launch a digital marketplace in Britain but this was all shut down due to their lack of ability to follow FCA’s anti-money laundering requirements.
While CEO Chao does not wish to immediately leave his role, he says that his team does have a successor in mind, meaning that sooner rather than later he will have to step down.
In this transition to becoming a regulated financial institution, the company plans to set up multiple regional headquarters around the world. Today, Binance has no official headquarters, so this would be a major step in the right direction for them. It would always be a massive change as cryptos are typically decentralized with no attachment to a central government and have no headquarters. Zhao says that their main goal is for the company to get licenses wherever they can.
The first step taken is Binance’s announcement that it would no longer offer stock tokens of shares to help them shift their focus to other products at this time. This is the product that Germany was hesitant on if it followed FCA’s anti-money laundering rules, so this could lead to more credibility to the company.
In the past couple of weeks, we have seen crypto falling, facing a major sell-off. Bitcoin, ethereum, and dogecoin have rallied with the help of major tech giants like Tesla, Twitter, and Amazon. Investors have been holding back their investments due to the growing rate of the Delta variant of Covid-19, while comments from the CEOs of these major tech giants have hinted at their importation, or expansion, of crypto into their business.
It will be interesting to see whether these cryptos, along with Binance, will surge or fall in the following weeks after their big announcements.
Browne, Ryan. “Binance Ceo Says He’s Willing to Step down as World’s Biggest Crypto Exchange Welcomes Regulation.” CNBC, CNBC, 28 July 2021, www.cnbc.com/2021/07/27/binance-ceo-says-willing-to-step-down-amid-crypto-crackdown.html.