Binance Plans To Work With Regulators as The Exchange Expands

Changpeng Zhao, the CEO and founder of Binance announced that he wants the largest crypto exchange to work with local regulators as it establishes regional headquarters.

Binance CEO wants to work with regulators
Image by Binance

During an interview with Reuters, Zhao, also known as CZ, said that Binance would depart from its decentralized approach to finance. Also, he stated that he wants the exchange to coordinate with authorities as the firm expands.

CZ said,

"We want to be licensed everywhere," said CZ. "From now on, we’re going to be a financial institution."

In addition, CZ stressed that he might step down as CEO. Also, he added that a CEO should be someone "with a strong regulatory background" and available.

Last week at a SCB 10X virtual summit, CZ noted that he is more of a tech entrepreneur, so, an individual well versed in regulations might be more perfect to replace him and lead the crypto exchange as it pivots "to structures more easily understood by regulatory compliance."

Furthermore, CZ added,

“I’m actually looking for a senior person with a strong compliance background, with a strong regulatory background to lead the entire organization."

“I’ve led the company for four years and it’s good, and we’ve got to go through this pivot [...] I don’t think I’m the best person to lead that effort. I think having somebody with a very strong regulatory background is actually better,” he stated.

The announcement comes after CZ said Binance's US branch was checking "the IPO route" for a public offering in the United States. This is due to a U.S.-based firm working independently from the crypto exchange, Binance.US that has been subject to scrutiny by local regulators.