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Binance US is preparing for a possible IPO
Changpeng Zhao, the Chief Executive Officer of Binance, says going public could be on the cards for the US division of the cryptocurrency exchange that is currently experiencing some regulatory headwinds in numerous jurisdictions across the globe.
Binance founder and CEO Changpeng Zhao, said that Binance US is putting in place the structures necessary for the cryptocurrency exchange to go public,
According to the CEO, the plan is to change its business model in the US so that Binance will pivot to become a financial service provider versus simply operating as a tech startup.
Zhao made the announcement during REDeFiNE Tomorrow 2021, where he confirmed that the exchange is dedicated to improving compliance, hence the exchange hiring or working closely with (former) government regulators and officials.
When he was asked about a possible initial public offering (IPO), he responded affirmatively, adding that the ‘IPO route’ is certainly an option given the exchange is already “setting up those structures to make it easier for an IPO to happen.”
“Binance US is looking at the IPO route. Most regulators are familiar with a certain pattern [like] having [an] HQ or having [a] corporate structure.”
Zhao’s announcement comes at a when the cryptocurrency exchange has continued to face increased regulatory scrutiny from various regulators over the world
However, Zhao acknowledged that his exchange’s communication with regulators has not been its “strong suit.” This could improve once regulatory bodies localised the communication process.
While the exchange is considering the option to go public and running preparation for it, the Binance chief tamed expectations by stating that there is “no direct plan for IPO right now.”
Instead, the exchange will continue to prioritize market growth, especially away from active trading and into the burgeoning space of crypto gaming, decentralized finance (DeFi), and NFTs.
Operations of Binance US started in 2019.
— SCB 10X (@SCB10X_OFFICIAL) July 23, 2021
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Author: Peter Siu