Binance‘s CEO has stated that he is prepared to stand aside from his position as the company is finalizing plans to become a regulated financial institution.
Changpeng “CZ” Zhao stated at a virtual news conference on Tuesday that he has no imminent intentions to leave his position, but that the firm does have a succession plan in place. Binance has for a long time remained among, if not the best cryptocurrency exchange UK.
Binance is the biggest digital currency exchange in terms of trading volume. However, it has recently been the subject of increasing regulatory scrutiny as governments across the world strive to regulate in the fast-growing crypto sector.
The Financial Conduct Authority in the United Kingdom has barred Binance’s British subsidiary from engaging in any regulated activity. According to FCA, Binance was one of many cryptocurrency companies that withdrew their applications to the UK’s interim licensing system after failing to fulfill anti-money laundering standards.
Regulators in Japan, Canada, and Italy have all taken action against the company, stating that it is not allowed to operate in those countries.
Making plans for the future
Binance plans to have a number of regional headquarters across the world, and Zhao stated that the company will seek licenses to operate wherever they are accessible. He previously said that Binance does not have a formal headquarters.
Zhao claimed that no preparations for his successor were in the works right now, adding that Binance was keeping options open.
“I’ll be honored to continue to run Binance as a regulated financial institution until we find somebody who may do a better job,” he said.
Binance was the subject of a federal investigation by the US Department of Justice and the Internal Revenue Service, according to Bloomberg in May.
Binance said it couldn’t comment on any ongoing regulatory talks, whether in the United States or abroad.
The company announced on Monday that it was lowering the maximum leverage — or borrowed funds — that customers may use to trade futures contracts, citing worries that such high-risk wagers were causing consumers to lose a lot of money.
Binance said earlier this month that it will no longer sell “stock tokens,” digital versions of stocks like Tesla, Apple, and Coinbase, in order to focus on other goods. The instruments may have breached securities rules, according to German officials.
This year has been a roller coaster for cryptocurrency. Bitcoin, the world’s most popular digital currency, reached an all-time high of nearly $65,000 at one point. However, it has subsequently shrunk dramatically.
After Amazon revealed it is looking to hire a digital currency and blockchain specialist to its payments division, the cryptocurrency temporarily climbed above $40,000 for the first price in nearly six weeks.
Binance’s recent measures, on the other hand, are “definitely telling that greater compliance with trading regulation is becoming the norm. We’ve seen similar moves from other trading venues such as Bitmex, Huobi and OKEx to enable more stringent requirements, deeper on-chain analysis for transfers and working with local regulators,” according to Justin d’Anethan, the chief of exchange sales at EQONEX.
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