Binance CEO Changpeng Zhao said he is willing to step down from his position as Binance seeks to become a regulated financial institution. What will be the future of the largest cryptocurrency exchange? Let’s see.
As many know, the company has come under intense regulatory scrutiny in the past. The reason is that authorities around the world are seeking to clamp down on the fast-growing cryptocurrency industry. Hence, Binance aims to establish a number of regional headquarters around the world and will seek licenses wherever they are available, Zhao said.
Is Changpeng Zhao going to resign thanks to Binance’s intention to become a regulated exchange?
Changpeng Zhao, also known as CZ, said he is willing to resign from his position as the company seeks to become a regulated financial institution. Speaking at a virtual press conference on Tuesday, he said he had no immediate plans to resign from his position, but that the company has a succession plan in place.
“We are going to rotate to be a fully regulated financial institution in the future,” Zhao told reporters. He also added that, during that turn, he would be “very open” to finding a replacement CEO with more regulatory experience.
What have been the challenges of regulators for the exchange?
Many, but we will mention only a few. In the UK, the Financial Conduct Authority banned Binance’s UK unit from any regulated activity.
Binance was one of many crypto companies that withdrew their applications to the UK temporary licensing scheme due to failing to comply with anti-money laundering requirements, the FCA said. The exchange said it could not specifically comment on ongoing discussions with regulators, either in the United States or elsewhere.
Regulators in Japan, Canada and Italy have also cracked down on the company, warning that it is not authorized to operate in the countries.
What will be the future of the company?
Zhao insisted that there were no immediate plans for his succession, adding that Binance was “keeping our options open.” “I will be honored to continue to run Binance as a regulated financial institution until we find someone who can do a better job.“, He said.
Earlier this month, Binance said it would no longer offer “stock tokens,” digital versions of stocks like Tesla, Apple, and Coinbase, to shift its business focus to other products. German regulators had warned that the instruments could have violated securities laws.