According to reports, Binance founder and CEO Changpeng Zhao has claimed that the company’s US arm could have an initial public offering in the next three years.
CEO Stays Optimistic On Binance Future
Changpeng Zhao seems highly optimistic about the rise of the cryptocurrency exchange. Even though the upcoming large private fundraising round is bound to reduce his control of the board after the next couple of months, Zhao remains positive that Binance.US will be able to have an initial public offering in the next three years. The report also stated that Zhao claimed that Binance was in a good place, having generated $800 million to $1 billion last year.
Binance’s Trouble With Regulators
The report about Zhao’s rather positive outlook on the future of Binance stands at odds with other information regarding the crypto exchange. For example, last month Brian Brooks, chief executive of the U.S. arm of the cryptocurrency exchange, resigned just three months after taking up the role. However, more importantly, the exchange has recently come under pressure and scrutiny from multiple financial watchdogs worldwide over concerns of money laundering and risking customer assets. For example, both US Treasury Secretary Janet Yellen and European Central Bank President Christine Lagarde have voiced their concerns about the potential of crypto exchanges like Binance to launder money.
The Monetary Association of Singapore (MAS) has recently included Binance.com on its investor alert list. The list identifies non-regulated financial entities that might be operating under the general assumptions of a licensed entity. Also, De Nederlandsche Bank (DNB) or the Dutch central bank stated that Binance did not comply with its anti-money laundering and anti-terrorist financing laws.
Trying To Get In Good Books By Initiating KYC
The concerns about Binance might not be unfounded, as until recently, document-based ID checks were not compulsory at Binance. Only the investors who wanted to raise their trading limits were mandated to provide personal ID documents. However, it does seem that Binance is eager to mend its relationships with financial regulators. The company has recently announced that users would have to complete a verification process to access its products and services. The verification includes uploading an ID card (driver’s license or passport) in order to be able to withdraw funds, cancel orders, and close positions.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.