The CEO of Binance, Chanpeng ‘CZ’Zaho says the company’s U.S subsidiary is looking forward to going public in three years. Binance is one of the world’s largest crypto exchanges, so this news holds significant importance. The report also claimed that Binance’s CEO said that the company is looking forward to following the footsteps of Coinbase.
On the other hand, the news to go public would serve Binance well in its legal battles. Binance over the years embattled with regulatory authorities. By making the company a public limited company, Binance would automatically adopt all the necessary rules and regulations. This would put Binance’s legal battles to the ground. Over the past few months, Binance has fought legal battles in multiple countries. These warnings against Binance have severely damaged the company’s image.
Binance’s spokesperson told CoinDesk that Zaho during his interview specifically predicted the period, but Zaho also told that time depends on the market factors as well. The favorable market trend means Binance’s U.S affiliate can complete its IPO in three years. Otherwise, it can take more than three years as well.
Zaho also said that Business growth is another key factor on which the time frame relies. That means if Binance’s U.S business experienced sustained growth over the three years, this means the company would be in the situation to complete its IPO after three years. Shortly, the company’s CEO said that the current IPO plan depends on multiple factors, including approval from the U.S regulatory authorities.
Apart from the Initial Public Offering, Binance.US is also looking forward to launching massive private funding round in the next months. This would help the CEO to further reduce the control of the company’s U.S affiliates. This move would help CEO to assume more authoritative control over Binance.
However, the current IPO vision contradicts the previous statement of Chanpeng ‘CZ’Zaho. Earlier this year Zaho said that Binance in the future has no intentions to go public. He also said that the company is happy with its overall performance and cash reserves. But the recent shift in policy shows that the company is looking forward to assuming centralized control over its worldwide operations.
This new direction has also helped Binance to comply with the regulations. The U. K’s Financial Conduct Authority (FCA), on the 25th of August, released a statement the FCA said that Binance has complied with the regulatory provisions imposed by the FCA. The firm fulfilled all the aspects of the requirements.
That shows that Binance is now looking to deal with regulatory warnings in the territories where Binance operates. It would further help the company to rely less on its affiliates when it comes to policymaking and strategic decision-making.