Binance US Is Looking to Go Public, Changpeng Zhao Says

Binance US operates separately from Binance.com.

Binance US, the United States-based affiliate of the global crypto exchange giant Binance, is considering an initial public offering (IPO) in the country, Binance CEO Changpeng Zhao confirmed on Friday.

While speaking at REDeFiNE Tomorrow 2021, a virtual summit organized by SCB 10X, the venture arm of Thailand’s Siam Commercial Bank, Zhao revealed the plans of his company. 

“Binance US is looking at the IPO route,” Zhao said, adding that the plans are “not 100% fixed yet.”

This is a complete U-turn from Binance’s previous plans with the company’s future as Zhao himself said multiple times that he wants the company to be more crypto-native with the usage of its utility token BNB, rather than going for public listing. However, priorities have definitely changed now.

But, the IPO plans of the US entity are not immediate, according to Zhao. Additionally, he pointed out that in order to take Binance US public, the company needs to change its current structure.

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“Most regulators are familiar with a certain pattern or having headquarters, having corporate structure. But, we are setting up those structures to make it easier for an IPO to happen,” Zhao said.

Binance established its US affiliate, Binance US, in 2019 that operates separately from the global business. As the US firm started to gain attention, Binance.com started to withdraw from the country entirely.

Troubles with Regulators

Meanwhile, Binance is under a considerable amount of regulatory heat in several countries. Regulators in the UK, Japan, Thailand, Malta, the Cayman Islands, Poland, and a few more have either warned against its crypto services or taken action in some form.

Zhao said that the company is likely to face further regulatory actions in the future as it ‘is in the mindset of shifting from a tech startup to a financial service’. Furthermore, he acknowledged the fact that dealing with regulators had not been a ‘strong suit’ of Binance, and the company is now strengthening its regulatory efforts by hiring former regulators.

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