Binance’s U.S. arm may in the future conduct an initial public offering (IPO). This was stated by the platform’s CEO, Changpeng Zhao, during a speech at the blockchain event REDeFiNE Tomorrow 2021.
No direct plan for IPO right now though. Currently focus on growing.
— SCB 10X (@SCB10X_OFFICIAL) July 23, 2021
The head of Binance added that the company is currently focused on growing the business. According to him, the Bitcoin exchange will open its headquarters and establish an organizational structure to ease the process of going public.
Zhao did not rule out heightened regulatory pressure following the intense scrutiny authorities have directed at the platform.
According to him, Binance is in the process of transitioning from a tech startup to a financial-services company. This is reflected in the growth of the compliance team, including former regulators.
So far, comm with regulators has not been our strong suite. Communication localization is also needed.
— SCB 10X (@SCB10X_OFFICIAL) July 23, 2021
“So far, engagement with authorities has not been our strong suit. Localisation of communications is also needed.”, Zhao admitted.
The Binance CEO believes that, in light of pressures from the Chinese authorities on the industry, the vector of development is shifting from the PRC to North America. But in the United States, according to him, there are few exchange startups due to stringent regulation.
He noted vast growth potential in Asia, particularly its southeastern regions. Africa also holds appeal, where industry development remains at early stages. For each region there is a different strategy, he added.
See huge potential for growth in Asia and SEA. Africa is also a blank-slate for development. Different strategies for different places.
— SCB 10X (@SCB10X_OFFICIAL) July 23, 2021
Asked about the industry’s growth prospects, Zhao said that further growth would be based on new applications in the areas of NFT and DeFi, as well as the creation of additional use cases. But this is a long road due to the need to build the appropriate infrastructure, the Binance CEO stressed.
TP: Overall crypto landscape?
CZ: New applications in DeFi. NFTs. Branching of audience and applications into new areas.
TP: How to drive more growth?
CZ: Build products people use. It’s a long journey as infrastructure will have be built along the way.— SCB 10X (@SCB10X_OFFICIAL) July 23, 2021
In June, the UK Financial Conduct Authority barred Binance Markets Limited from any regulated activity in the country without prior written approval.
Cayman Islands began reviewing Binance’s operations, Thailand and Hong Kong accused the company of operating without a license, Japan issued another warning against it.
Polish regulators warned consumers about the risks of interacting with the platform, and Italy and Malta — about Binance’s unregulated activity.
Amid regulatory pressure, Changpeng Zhao published an open letter in which he outlined Binance’s plans to ensure regulatory compliance and protect customers.
Earlier, the crypto-derivatives exchange FTX repurchased Binance shares that had been sold. Its founder Sam Bankman-Fried explained this move by a difference in business-management styles.
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