Binance CEO CZ says that having their own bank would unlock one more channel for interacting with global regulators.
Binance, the world’s largest crypto exchange, is considering purchasing or setting up its own bank.
The company’s CEO Changpeng Zhao, or CZ, revealed the news during an AMA session hosted by Binance-owned CoinMarketCap on July 22.
Could it happen?
During the AMA, CZ highlighted that the idea of purchasing or building their own bank has been circulating around Binance for a while. When asked about Binance’s plans to “ever launch a bank with all the world products,” CZ answered that “the idea of buying a bank came up like a thousand times.”
CZ elaborated that bank acquisition ideas have been discussed, but Binance still does not have any specific plans to announce at the moment. “There are a number of initiatives or discussions that are just ongoing,” the CEO noted, adding that Binance has several teams specialized in banking-related opportunities. CZ noted that his involvement in these discussions is limited.
Binance’s CEO also emphasized that the relationship between the traditional financial system and the crypto industry has seen a major shift in recent years. “Two years ago none of traditional financial banks wanted to work with crypto exchanges,” while today credit card companies as well as major global banks are going crypto, CZ said.
One more channel to interact with regulators
The shift is providing Binance with a more favorable position in terms of cooperation with traditional financial players. CZ says that the exchange is indeed considering a deeper integration with banking services. However, acquiring or creating their own bank will not solve all the problems between the two industries, notes Zhao.
The CEO elaborated:
“At the same time, buying a bank doesn’t solve all the problems. It probably gives us just an easier channel to talk to a regulator.”
Binance is apparently facing issues with financial watchdogs around the world. Regulators in Malaysia and Malta have publicly stated that the exchange is not authorized to operate in these countries.
After acquiring the biggest crypto website, CoinMarketCap, in April 2020, Binance purchased Swipe, a firm focused on crypto-to-fiat Visa debit cards, in early July. Binance CEO CZ is known as the wealthiest figure in the crypto industry, with a net worth doubling from $1.3 billion in 2019 to $2.6 billion by 2020.