Binance prepares to become a financial institution
The largest cryptocurrency and digital asset trading platform, Binance, which is under pressure from financial regulators around the world, plans to obtain all necessary licenses. The exchange's CEO Changpeng Zhao (CZ) announced plans for major changes that could improve relations with financial regulators.
Governments and financial regulators are paying closer attention to the cryptocurrency and digital asset industry. Often, the rules and measures they impose create problems for exchanges such as Binance because their success has been achieved in an unregulated arena. The head of Binance said that the platform intends to establish a regional headquarters with regulatory approval, which means centralizing its operations.
Binance prepares to become a financial institution
CZ mentioned that the current situation is not one in which he could resign. However, should the need arise, Changpeng Zhao will hand over the reins of the largest cryptocurrency exchange to someone who can handle the difficulties better than him. According to CZ, Binance now seeks to become a regulated financial institution, but the exchange's CEO is also open to finding a successor with a strong regulatory framework.
Binance's plans and previous clashes with regulators
In the future, Changpeng Zhao wants to see his brainchild Binance as a full-fledged financial institution with all the necessary licensing papers. It is worth noting that CZ's statements were made amid numerous inspections of the exchange by regulatory authorities. Also now the platform is suspected of its use for illegal activities, in particular for money laundering. However, so far there is no evidence in such allegations.
As a reminder, this is not the first time CZ and Binance have tried to find common ground with global regulators in the field of cryptocurrencies and digital assets. Earlier this month, the exchange halted one of its new services, which allowed trading in exchange tokens. The platform took such a step because of the scrutiny of regulators, in particular the German Financial Supervisory Authority. Also this month, Binance lowered its maximum leverage to 20X to minimize concerns about consumer protection. As we reported earlier, Binance lowered the daily withdrawal limits for accounts that have not been fully vetted from 2 BTC to 0.06 BTC.
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