Changpeng Zhao, more commonly known as ‘CZ’ in the crypto community, has now stated that it is possible that Binance U.S could go public soon via an IPO. The Binance founder and CEO had spoken at a recent online event this past Friday, wherein the IPO route had been initially mentioned.
As such, Binance U.S could list shares through a United States exchange via the initial public offering before long.
‘CZ’ had confirmed that the IPO plan was indeed being considered for Binance U.S, despite the fact that the United States has had numerous issues with crypto in the past as far as regulations may be concerned. Thailand’s Siam Commerical Bank had organized the aforementioned online event, known as REDeFine Tomorrow, at which Changpeng Zhao had made his announcement. Moreover, the CEO has stated that in order to ensure a seamless process, the exchange will be working alongside the American regulators, and it shall also be establishing ‘structures’ that will help speed things along.
The CEO added that Binance U.S is actively considering the IPO path as of now and that many regulators will be quite familiar with having a knowable pattern, or a corporate structure, or even a headquarters. ‘CZ’ stated that it is important to establish these structures in order to make the IPO route easier to implement.
It is of the utmost importance to fully comprehend that Binance U.S functions differently to that of Binance. Binance U.S has to work alongside the regulations of the United States government and regulatory framework. The U.S version of Binance thus has a drastically lower trading volume as well as different trading pairs as compared to its more mainstream counterpart.
It was in 2019 that Binance U.S had been founded, and it is operated through BAM Trading Services (Binance’s U.S partner), with the head offices being situated in San Francisco. Additionally, Binance U.S is indeed FinCEN compliant after it had registered itself as an official business of money transmission across several states in the U.S.
Furthermore, while Binance U.S has undoubtedly been as compliant as it can be, there have nevertheless been various reports which imply that the exchange continues to be investigated by the country’s law enforcement institutions and agencies on the basis of non-compliance regarding anti-money laundering and tax-based regulations. It would thus be difficult to see how the previously mentioned IPO route can be greenlit and administered under such strenuous circumstances.