Changpeng Zhao, the CEO of the cryptocurrency exchange, admitted that Binance was a “centralized entity.” A major change of speech, which should have enormous repercussions.
The world’s largest cryptocurrency exchange, Binance, is not having an easy time. Between exercise bans in several countries, an ongoing investigation against her in the United States, a complaint filed in Thailand and the threat of a wide-ranging lawsuit, Binance is worried on all sides.
Its poor understanding with financial regulators in many countries is linked to several factors. The platform does not necessarily respect the standards and rules incumbent on “traditional” companies, and does not always have the authorization to engage in its activities. And, most importantly, Binance does not have a head office.
Changpeng Zhao, CEO, proudly explains from the inception of the platform that it does not have a head office, because “ bitcoin does not have any “. This absence of a seat has, above all, enabled it not to have any very precise law or regulation to comply with until then. But things could change soon.
A “centralized entity”
Binance would she have decided to side, finally? It seems so. In an interview with the Hong Kong newspaper South China Morning Post, Changpeng Zhao, for the first time, admitted that the business had to change. ” We are in charge of a centralized exchange platform, and we realized that we have to be a centralized entity in order to be able to work with the regulators », He indicated. ” We need to be more transparent about our shareholders and in our risk control, to have records. As the most important player in the industry, we need to prepare for change. We are going to transform, so that it is easier for regulators to work with us “. Binance could therefore, very soon, have an official seat.
Changpeng Zhao’s speech is new. He had until then refused any attempt at true centralization, preferring to play on the international aspect of Binance to escape regulations. But it seems that the growing number of lawsuits and investigations have changed the CEO’s mind.
Last May, Changpeng Zhao still felt it was unnecessary to have a real foothold in a country, explaining that when employees think of a head office, “ they think of offices, a bank account, a license, etc. But today, you don’t need all of this to run a businesse ”. The CEO will have, despite everything, to obtain a license and papers to continue to practice.
Created in 2017 in Hong Kong, Binance quickly settled in Japan, then in Taiwan, and in Malta, a country known to have very flexible legislation on cryptocurrencies, says the specialized site Decrypt. But even the tax haven had come to recognize in 2020 that Binance did not have the necessary license to operate in the country and it had, once again, had to move elsewhere. The platform is officially registered in Cayman Islands and Seychelles. But will Binance officially set up its headquarters in these islands? For the moment, no information has been given on the place where the premises of the company could be installed.