Binance.US, the US outpost of the world’s largest crypto exchange, apparently intends to follow Coinbase’s path and someday go public.
Binance CEO Changpeng Zhao “CZ” said the US arm of the global platform is considering an initial public offering (IPO) despite ongoing regulatory crackdown.
Speaking at the REDeFiNE Tomorrow 2021 virtual blockchain summit, the CEO said his exchange is in no rush to launch operations in the United States. CZ added that Binance, the parent company, is comfortable with its cash reserves and growth rates and sees no reason to rock the boat with a public market debut.
“Binance US is considering the IPO route. Most regulators know a certain model, or have a head office, a corporate structure. But we are putting these structures in place to facilitate the completion of an IPO, ”said the Binance boss.
Binance launched its US market operations end of 2019 via a partnership with a company registered with FinCEN, BAM Trading Services. The exchange has licensed its matching engine and wallet technologies to its US partner, which manages operations in accordance with local regulations.
CZ also revealed that it expects Binance to come under scrutiny in the future as the influential exchange grows from “a tech startup to a financial service.”
The CFTC confirmed last year that it had investigated whether Binance had broken U.S. laws by allowing Americans to trade cryptocurrency derivatives on the platform. Ahead of the CFTC investigation, Forbes released leaked documents that allegedly described how CEO Changpeng planned to evade US regulation and profit from US investors.
Although US residents were not allowed to access Binance’s trading services, potential clients were taught to mask their real IPs through virtual VPNs to conceal their location.
Additionally, files verified by Forbes staff explicitly mention that Binance executives were planning to undermine the ability of “anti-money laundering and US sanctions enforcement to detect illicit activity” and distract everyone. American guard dogs.
Elsewhere, Binance faces growing regulatory crackdown on multiple fronts. More recently, the UK Financial Conduct Authority (FCA) prevented the stock exchange from carrying out regulated activities in the country.
In May, Binance’s UK branch was forced to withdraw its application for FCA registration due to lapses in anti-money laundering procedures. Binance has also been ordered to add a notice in a prominent place on its website telling users in the UK that it is not authorized to offer. regulated activity.
Brazil’s financial market regulator, the Securities and Exchange Commission (CVM), has also banned the influential crypto exchange from offering derivatives in the country.