As the organisation works to become a licensed financial institution, Changpeng “CZ” Zhao says he’s prepared to step down. Binance, the world’s largest cryptocurrency exchange, is seeking a new chief executive with a solid regulatory experience after being pressured by regulators around the world to reform itself.
Zhao has stated that he is willing to pass out Binance to someone who can perform a better job. He stated that Binance would pursue clearance to establish regional offices, changing the company’s previous decentralised structure. Zhao claimed that no preparations for his successor were in the works right now and that Binance was leaving all possibilities open.
CEO Zhao stated that they intend to build a long-term ecosystem around blockchain technology. Binance is willing to work with regulators from across the world to identify the best approach to create a level playing field, he added.
Binance released a new application programming interface (API) tool for tax reporting. The program enables two applications to communicate with one another, allowing Binance clients to trace their transactions and quickly transmit their transaction history to third-party service providers for tax reporting. Users may also get a real-time snapshot of their local tax liabilities with the tool.
In addition, they also stated that it would strengthen its know-your-customer (KYC) standards and provide tax compliance assistance to its users. They’re beefing up their KYC efforts to help them maintain their advantage in this area. The update is applicable immediately for new Binance account applications and will be implemented for current users in stages from August 4 through August 23.
By trading volume, Binance is the largest virtual currency exchange in the world. It has been the subject of increasing regulatory criticism as governments across the world strive to regulate the rapidly developing crypto market. Financial regulators in the United Kingdom, Germany, Hong Kong, Italy, Japan, Lithuania, and Thailand have all expressed reservations about Binance in recent months.
Binance reports it is in negotiations with regulators in the United States and internationally. The business said earlier this month that it will stop offering “stock tokens,” which are digital representations of stocks like Tesla, Apple, and others. Binance also said earlier this month that it will lower the maximum leverage or borrowed funds that customers may use to trade futures contracts.
Many cryptocurrency companies withdrew their applications to the UK’s temporary licensing system after failing to fulfil anti-money laundering standards. On July 27th, the firm lowered the client withdrawal limit from 2 bitcoins to 0.06 bitcoins.
Zhao claims that running Binance as a licensed financial institution would be “honourable.” To counter-regulatory scrutiny, he says the aim is to employ ex-regulators and get licensed everywhere. According to Bloomberg, the company was the subject of a federal investigation by the US Department of Justice and the Internal Revenue Service. Zhao claimed he didn’t know if the exchange was part of a coordinated operation.
Binance CEO Zhao said the firm would seek regulatory clearance to become a financial institution. Binance provides customers all around the world with a variety of services, including spot and futures trading. According to mobile analytics firm Sensor Tower, it is gaining traction in the United Kingdom, where its app was downloaded 1.8 million times in 2021. However, Binance was recently prohibited from engaging in regulated operations by the UK’s financial authorities.
Additionally, local officials in the United States have been looking into accusations that Binance participated in unlawful trading activities for US-based customers. The Internal Revenue Service and the Justice Department have allegedly begun an inquiry against the firm, according to Cointelegraph. Binance’s US affiliate was looking to explore the IPO path for a public offering in the US, according to CZ. As part of its inquiry, the Commodity Futures Trading Commission allegedly made similar accusations against the crypto exchange.