NCFAs innovation and funding ecosystem

Binance CEO says he’s willing to step down as world’s biggest crypto exchange welcomes regulation

CNBC | Ryan Browne | Jul 27, 2021

changpeng zhao binance - Binance CEO says he’s willing to step down as world’s biggest crypto exchange welcomes regulation

The boss of cryptocurrency exchange Binance says he’s willing to step down from his role as the company seeks to become a regulated financial institution.

Speaking at a virtual press conference Tuesday, Changpeng “CZ” Zhao said he had no immediate plans to quit his role but that the company does have a succession plan in place.

“We’re going to pivot to be a fully regulated financial institution going forward,” Zhao told reporters, adding that, during that pivot, he would be “very open” to finding a replacement CEO with more regulatory experience.

Binance is the world’s largest digital currency exchange by trading volume. However, it has come under intense regulatory scrutiny lately as authorities around the world seek to clamp down on the fast-growing crypto industry.

See:  Bitcoin rises as UK financial watchdog bans Binance cryptocurrency exchange

In the U.K., the Financial Conduct Authority banned Binance’s British unit from undertaking any regulated activity. Binance was one of many crypto firms that withdrew their applications to the U.K.’s temporary licensing regime due to failing to meet anti-money laundering requirements, the FCA said.

Regulators in Japan, Canada and Italy have also clamped down on the firm, warning it is not authorized to operate in the countries.

Planning for the future

Binance aims to set up a number of regional headquarters around the world and will seek licenses wherever they are available, Zhao said. He has previously said Binance has no official headquarters.

Zhao insisted there were no immediate plans for his succession, adding Binance was “keeping our options open.”

“I’ll be honored to continue to run Binance as a regulated financial institution until we find somebody who may do a better job,” he said.

In May, Bloomberg reported that Binance was facing a federal investigation by the U.S. Department of Justice and Internal Revenue Service.

See:  More regulation coming: SEC Chairman signals stablecoins and other tokens could fall under its rules on security-based swaps

Binance said it couldn’t comment specifically on any ongoing discussions with regulators, whether in the U.S. or elsewhere.

On Monday, the company said it was reducing the maximum leverage — or borrowed funds — users can use to trade futures contracts, amid concerns such high-risk bets were leaving clients with hefty losses.

Earlier this month, Binance said it would no longer offer “stock tokens,” digital digital versions of shares like Tesla, Apple and Coinbase, to shift its commercial focus to other products. German regulators had warned the instruments may have violated securities laws.

Continue to the full article --> here


NCFA Jan 2018 resize - Binance CEO says he’s willing to step down as world’s biggest crypto exchange welcomes regulation The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Binance CEO says he’s willing to step down as world’s biggest crypto exchange welcomes regulationFF Logo 400 v3 - Binance CEO says he’s willing to step down as world’s biggest crypto exchange welcomes regulationcommunity social impact - Binance CEO says he’s willing to step down as world’s biggest crypto exchange welcomes regulation

FFCON21 ON-DEMAND VIDEOS NOW AVAILABLE!



FFCON21 on demand videos - Binance CEO says he’s willing to step down as world’s biggest crypto exchange welcomes regulation

Support NCFA by Following us on Twitter!