Binance Holds Discussion With Sovereign Wealth Funds For Investment Purpose

Binance not Relenting on Improving Relationship with Global Regulators

Speaking in an interview with the Financial Times, which was published on Tuesday (Nov. 23, 2021), Binance CEO Changpeng Zhao revealed that it sought out investment for sovereign wealth funds, in order to boost its standing with regulators and governments globally.

While Zhao did not mention the specific funds the crypto exchange was interacting with, the Binance chief said that getting investment from the sovereign wealth funds may tie the company to specific countries, with Zhao saying “which we want to be slightly careful with.”

Meanwhile, Binance has been under intense regulatory pressure since this year, from regulators such as the UK’s Financial Conduct Authority (FCA), the European Union (EU), South Africa’s regulatory watchdog, among others.

Amid the regulatory scrutiny, the crypto exchange giant stopped offering certain services in different jurisdictions, in compliance with local regulations. In October, Binance announced that it would restrict users in Mainland China from accessing the customer-to-customer (C2C) trading platform by the end of December.

Although Binance originally started in China, the exchange stopped operations in the country in 2017, following the ban on bitcoin exchanges. Apart from planning to stop servicing Chinese customers, the platform is also delisting CNY trading pairs on its platform.

While Binance is having talks with sovereign wealth funds to improve the perception with global regulators, the cryptocurrency exchange has been making a series of hires to boost regulatory compliance.

In the last few months, the company has hired Greg Monahan as its new Global Money Laundering Reporting Officer, Aron Akbiyikian as Director of Audit and Investigations, Tigran Gambaryan as the new VP of Global Intelligence and Investigations, among others

The crypto exchange is also working towards getting a new headquarters still to appease regulators, which is a u-turn from its decentralized operational model.

Binance US Looking to Raise More Funds in Pre IPO Funding

Meanwhile, Binance US, the American arm of the global exchange, is preparing to go public. Coinbase, the biggest cryptocurrency exchange in the United States became the first publicly-listed crypto firm in April 2021.

Zhao mentioned in September that Binance US was planning to launch an initial public offering (IPO) in the next three years. While speaking at the Bloomberg New Economy Forum held earlier in November, the Binance chief said that the United States arm of the exchange needs to raise a few million dollars before going public.

According to Zhao:

“I think it’s a couple hundred million dollars. From an IPO perspective, it’s probably best to have a few rounds of financing before that.”

The Binance CEO also said that the company’s daily transaction volume has skyrocketed in two years. From the previous record of $30 billion, the current daily transaction volume stands at $170 billion, with Zhao adding that the revenue rate was “in the billions.”

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