Changpeng Zhao (Binance CEO) reportedly expects that the cryptocurrency industry will be affected by heavy regulations.
Changpeng Zhao CZ, speaking at the REDeFiNE 2021 virtual summit, said Binance might change its nature. This will be a way to respond to the new regulations.
Recently there has been more regulatory scrutiny. Heavy regulation is to be expected. Binance intends to move from a technology startup to a financial services company. We are stepping up our compliance efforts, including [hiring] former regulators,” he told CZ.
CZ spoke to Tai Panich, chief investment and venture officer of SCB 10X(a Siam Commercial Bank branch in Thailand), hosting the event. They discussed the future of this process as regulatory reviews continue on Binance’s cryptocurrency space.
Bloomberg published an article in May that said the U.S. Justice Department (Revenue Service), the Commodity Futures Trading Commission, and the U.S. Justice Department are all looking into Binance.
Binance CEO on IPO:
Zhao also responded to a question regarding Binance’s potential first public offer (IPO). He said that while it is currently on the agenda, it was not his main goal.
Officials in the U.S. have banned Binance from conducting business in the country since 2019, which was for regulatory reasons. Binance.US has launched Binance US along with other investors. This independent cryptocurrency exchange has been registered with United States Financial Crimes Enforcement Network. All this complies with U.S. laws.