Coinbase and Huobi, which rank in the top three crypto exchanges worldwide alongside Binance, operate with regulatory licenses. 2 exchange globally by trading volume.Ĭompared to its rivals, Binance has historically taken a more lax approach to regulation and offers riskier products such as crypto derivatives. Prior to founding Binance, CEO Zhao was chief technology officer of China-based OKCoin, which was at the time the No. It’s the top crypto exchange by trading volume and the firm issues Binance Coin, the fourth-largest cryptocurrency worldwide with a market capitalization of nearly $54 billion. Compliance is a journey-especially in new sectors like crypto.”įounded in 2017, Binance is now a major player in the crypto-verse. That trade-off is very, very clear.” Earlier this month, the CEO said in a blog post that the exchange hasn’t “gotten everything exactly right… but reiterate our commitment to partner with regulators. It’s much better to play within the confines of that. On Tuesday, Zhao restated the company’s stance towards regulatory compliance, saying: “Longer term, playing within the rules, 100% compliant. Even the Cayman Islands’ financial regulator warned Binance that it is not authorized to operate a crypto exchange from its jurisdiction. In recent weeks, Japan’s Financial Services Authority sent Binance a warning for operating without authorization Thailand’s Securities and Exchange Commission filed a criminal complaint against the company for the same violation. regulator when it was unable to meet anti-money laundering requirements. In May, the company withdrew its application to register with the U.K. Last month, the U.K.’s financial regulator banned Binance from undertaking “any regulated activity” in its jurisdiction. Justice Department, Internal Revenue Services, and other agencies are investigating the company for ties to money laundering and tax evasion. The company did not respond to a request for comment.īinance is shifting operations as it garners more attention from global regulators. Binance will also ramp up its hiring of compliance experts worldwide it plans to double its team by year-end. Domiciled in the Cayman Islands, the currently headquarter-less firm will establish several regional headquarters around the world the locations have yet to be determined.
He has been CEO for four years.īinance is applying for licenses in multiple jurisdictions, as part of its plan to become a regulated financial institution. I feel CEOs should not stay for more than 10 years, ideally around 5 years. “CEO contingency planning starts in Day 0, same as any other role. I’ll always contribute to Binance and the BNB ecosystem… I don’t have to be CEO to do that,” Zhao said.īut a few hours after the briefing, Zhao clarified on Twitter that there are “no immediate plans” for the succession. “We are looking for someone with a strong regulatory background to step in and be CEO.
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