As Binance seeks to move towards financial regulation, its boss said that he is willing to step down from his position. The boss of the crypto exchange spoke at a virtual press conference conducted on Tuesday and said that while he didn’t have any plans of quitting his role right now, it didn’t mean that a succession plan wasn’t in place already. Speaking to reports, Changpeng ‘CZ’ Zhao said that going forward, the exchange was planning to become a fully regulated financial institution. He said that during this move, he was more than willing to finding a replacement CEO who has more regulatory experience under their belt.
In terms of trading volume, Binance is considered to be the largest digital currency exchange in the world. However, lately, it has been subjected to intense regulatory scrutiny because authorities all across the globe are aiming to clamp down on the rapidly growing crypto industry. The Financial Conduct Authority (FCA) in the UK banned the British unit of the Binance exchange from conducting any regulated activity. It was one of the numerous crypto exchanges that had withdrawn their applications to the temporary licensing regime in the country because they did not meet the anti-money laundering requirements.
Regulators in Italy, Canada and Japan have also clamped down on the company and have warned people that the exchange is not authorized for operating in the countries. Zhao said that Binance was planning on establishing various regional headquarters across the globe and would apply for licenses where they are available. He has previously stated that the company does not have any official headquarters. He also insisted that they didn’t have any immediate plans of replacing him, but added that the exchange was keeping its options open. He said that he was more than willing to run Binance as a regulated financial company until a suitable replacement is found.
It was reported in May that a federal investigation might be launched into Binance by the US Department of Justice as well as the Internal Revenue Service. Binance stated that it couldn’t disclose any ongoing discussions they were having with regulators, whether in the US, or elsewhere. The company said on Monday that it was cutting down its maximum leverage, which are borrowed funds that can be used by people for trading future contracts. This was due to concerns that high-risk bets were causing hefty losses for clients.
Earlier this month, the exchange had also announced that it wasn’t going to offer ‘stock tokens’, which are essentially a digital versions of shares like Coinbase, Apple, and Tesla, and was planning on focusing commercially on other products. A warning had been issued by German regulators that the securities law may have been violated by these instruments. The entire year has proven to be a wild one for crypto in general. Bitcoin, which is the leading digital currency in the market, almost reached the $65,000 mark at one point, but it has contracted sharply since then.