TL;DR Beakdown
- Binance exchange announce plan to launch IPO.
- Zhao says only Binance US is going public.
- Binancein line after Coinbase to conduct IPO.
Binance crypto exchange CEO Changpeng Zhao has hinted that the number one crypto exchange may eventually go public via an IPO. The CEO stated that Binance US is setting up structures that will allow it to go public.
This is despite the Binance crypto exchange’s rocky relationship with regulators globally. However, the plan to go public is only limited to the US arm of the firm, which is an independent entity.
Zhao made the announcement on Friday at the “Redefine Tomorrow” event organized by SCB 10X, the venture arm of Thailand’s oldest Siam Commercial Bank. The Binance crypto exchange CEO also notes that the IPO is not a 100 percent complete project.
“Binance US is looking at the IPO route. Most regulators are familiar with a certain pattern or having headquarters, having a corporate structure. But we are setting up those structures to make it easier for an IPO to happen,” C.Z. said.
He also revealed that the IPO plan is not an immediate one and could possibly change in the future.
After announcing plans to launch an IPO, Binance follows popular American crypto exchange firm, Coinbase’s exploits to engage in an IPO. The American crypto firm debuted in Nasdaq back in April and has since then been selling its shares in the stock market.
Since Coinbase IPO, it validated the U.S. ecosystem where crypto companies can go public.
Zhao speaks further on Binance crypto exchange compliance effort
It is no longer news that several regulators are hunting the number on crypto exchange across the globe. From the U.K. to Cayman Island, Thailand, among others, have all been on the neck of the exchange firm.
Towards putting an end to this, Zhao explained that Binance would make a pivot from a technology startup into a financial services company. He notes that the firm will also step up its compliance efforts through hiring many traditional compliance professionals and ex regulators.
He acknowledged that communicating with regulators is currently not one of Binance’s core strengths.
