Embattled crypto exchange Binance has said it will deepen its international ties as it seeks to see off regulatory scrutiny.
The world’s largest crypto exchange by trade volume has faced heat from regulators worldwide, including the UK’s FCA, for operating without proper permissions.
Binance’s chief executive Zhao Changpeng said he will seek investments from sovereign wealth funds to give governments a stake in the company. The exchange is also offering more transparency about its inner workings and has filed to open an additional firm in Ireland which has been earmarked as a possible local for a new company HQ.
In comments to the Financial Times, Zhao said that he believes investment from sovereign wealth funds will help to improve Binance’s “perception and relationships” at the state level.
“But it may also tie us to specific countries . . . which we want to be slightly careful with,” he added, signalling that Binance is treading lightly as it pivots from a reactionary to a proactive stance on regulation.
Until recently, Binance was secretive about the location of its founder and insisted it had no fixed headquarters. Now, Binance has opened a fourth firm in Ireland and will provide regulators with greater clarity once it settles on a base for its operations.
Last week Binance even created a list of fundamental rights for crypto users to announce its support for regulation.
There is a perception that exchanges are “being crazy” as a result of not having traditional licences, Zhao told the Financial Times. “I’m a very calm guy. I’m not a crazy guy. So we actually want regulation to be more clear in this space.”
Despite Binance’s efforts to pacify regulators, the UK’s financial watchdog has confirmed it cannot properly supervise the exchange because it has declined to provide them with necessary information on company functions and trading names.