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Binance plans US IPO soon, CEO reveals

Despite recent regulatory forays, Binance US is planning to go public, as Changpeng Zhao said on Friday (23). Located in the United States, Binance US is independent of Binance.

Binance plans US IPO soon, CEO reveals

Binance plans US IPO soon, CEO reveals

“Our US partner is looking at the potential IPO route [initial public offering],” said CZ during “REDeFiNE Tomorrow 2021,” an event hosted by SCB 10X, a holding company of Siam Commercial Bank of Thailand.

However, the executive pointed out that the details of this IPO are not yet 100% defined.

CZ also said Binance is prepared to face heavy regulations in the future. More precisely, he stated that Binance is planning “to move from a tech startup to a financial service”.

In addition, Binance’s CEO reinforced his recently released message that the brokerage is significantly increasing its global compliance efforts.

To help with the process, the company is hiring former regulators and “traditional compliance people”. The aim is to improve communication with regulators, something he admitted is not one of Binance’s strengths.

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Zhao also mentioned that Coinbase’s listing earlier this year on Nasdaq showed that the US now has an ecosystem where cryptocurrency companies can go public. In addition to Coinbase, other exchanges such as Gemini and Kraken have already announced plans to go public.

“Binance US is analyzing the IPO route. Most regulators are familiar with a certain standard, or have a headquarters, a corporate structure. But we are establishing these structures to make it easier for an IPO to happen,” said CZ.

With regard to global Binance, Zhao acknowledged that an IPO is not yet in the immediate plans. However, he did not rule out this possibility in the future.

Anyway, Binance would need to go through a restructuring for that to happen. That’s because most regulators require companies to have a head office or a fixed office, which is not the case with the exchange.

The possibility of an IPO comes at one of Binance’s most delicate moments. Regulators in the UK, Japan, Italy, Thailand, Poland, Cayman Islands and others have issued warnings of the exchange’s irregular performance.

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