Binance US, the United States-based affiliate of the global crypto exchange giant Binance, is considering an initial public offering (IPO) in the country, Binance CEO Changpeng Zhao confirmed on Friday.
While speaking at REDeFiNE Tomorrow 2021, a virtual summit organized by SCB 10X, the venture arm of Thailand’s Siam Commercial Bank, Zhao revealed the plans of his company.
“Binance US is looking at the IPO route, Zhao said, adding that the plans are “not 100% fixed yet.”
This is a complete U-turn from Binance’s previous plans with the company’s future as Zhao himself said multiple times that he wants the company to be more crypto-native with the usage of its utility token BNB, rather than going for public listing. Priorities, however, have definitely changed now.
But, the IPO plans of the US entity are not an immediate one, according to Zhao. He also pointed out that in order to take the Binance US public, the company needs to change its current structure.
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“Most regulators are familiar with a certain pattern, or having headquarters, having corporate structure. But we are setting up those structures to make it easier for an IPO to happen,” Zhao said.
Binance established its US affiliate, Binance US, in 2019 that operates separately from the global business. As the US firm started to gain attention, Binance.com also started to pull out from the country entirely.
Troubles with Regulators
Binance, meanwhile, is facing a ton of regulatory heat in several countries. Regulators in the UK, Japan, Thailand, Malta, the Cayman Islands, Poland, and a few more have either warned against its crypto services or taken action in some form.
Zhao said that the company is likely to face further regulatory actions in the future as it ‘is in the mindset of shifting from a tech startup to a financial service’. He also acknowledged the fact that dealing with regulators had not been a ‘strong suit’ of Binance, and the company is now strengthening its regulatory efforts by hiring former regulators.