Binance, a cryptocurrency exchange, is shifting its strategy in the face of increased regulatory scrutiny, with plans to establish regional headquarters around the world.
According to Reuters, the move is intended to assist the exchange in gaining regulatory certification from local authorities around the world, according to CEO Changpeng Zhao.
“We want to be licensed all over the place...
We're going to be a financial institution from now on,” he declared. He went on to say that the company would be evolving from its startup roots and moving away from its former decentralized strategy.
The news comes after Binance CEO Changpeng Zhao revealed that the company plans to double its compliance team by the end of the year. The majority of financial officials throughout the world have focused their attention on Binance, claiming that the exchange is aiding illicit activity. Scams and money laundering have been major concerns.
Countries such as the United Kingdom, Germany, Hong Kong, Italy, Japan, Lithuania, and Thailand have expressed regulatory concern. Binance has been denied permission to operate as a crypto asset business in the United Kingdom by the Financial Conduct Authority.
Furthermore, the Federal Trade Commission in the United States has received 760 customer complaints against Binance since June 2020. The difficulty to withdraw money from the exchange and suspicious activities were among the complaints. Despite the criticism, Binance remains the most popular worldwide exchange, having grown nearly tenfold in the last year to $668 billion last month.
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