Binance’s CEO, Changpeng Zhao (CZ), believes that the U.S. branch of the world’s largest cryptocurrency exchange, Binance, may go public through an initial public offering (IPO).
He went on to say that US-based exchange Coinbase has also helped put up a “playbook” for cryptocurrency companies to conduct IPOs.
Following Along with Coinbase
A few months ago, the CEO said that the IPO of Coinbase was the “blueprint” that other companies needed to follow in order to create their own cryptocurrency exchange. Zhao told Decrypt in May that the rival exchange had provided a “very clear playbook” to other crypto firms, and that Binance will want to do the same as Coinbase.
As authorities expressing worry about their absence of a physical headquarters, Binance is now attempting to play by U.S. regulations.
With the authorities in several countries closing off access to their local fiat currency onramps, Binance’s U.S. operations recruited Brian Brooks, who was formerly the chief of the U.S. Securities and Exchange Commission and who also served as Coinbase’s COO.
They’re hoping Brooks can guide the business in the correct way with the U.S. authorities since the exchange has a 24-hour trading volume of $280 million, whereas Coinbase’s $1.3 billion figure dwarfs it. If it works, the project may appear on an American stock market.
Binance’s Regulatory Concerns
Regulators from all around the world are now targeting Binance. Binance was recently barred from offering asset management and financial services in the United Kingdom and Italy.
Other regulatory authorities in Japan, Canada, and Thailand have expressed worry about Binance.
Thailand’s financial authority (or securities regulator) has filed a criminal complaint against the exchange for running an unlicensed digital asset company, while the Financial Conduct Authority of the United Kingdom has issued a similar ban only days earlier.
According to Japanese officials, Binance is operating illegally in Japan. In April, the German securities authority warned that issuing security tokens tied to equities may result in fines. Customers in Ontario were also encouraged to withdraw funds before the year’s end, as long as any outstanding transactions were completed beforehand.
Binance has been barred from functioning as a cryptocurrency exchange in or from the Cayman Islands, according to the Cayman Islands Monetary Authority (CIMA).
Binance, on the other hand, claims to have no physical presence while emphasizing the importance of its previous compliance requirements.