Binance, the world’s largest cryptocurrency exchange. Reportedly in talks to sell a stake in the company to sovereign global wealth funds.
Binance is now seeking global funding to improve relationships with regulators. In addition to planned “mega funding” for its US-based business Binance.US, according to Binance CEO Changpeng Zhao in a Tuesday interview with The Financial Times.
Several financial regulators around the world have been cracking down on Binance this year. According to Zhao, and the upcoming funding is intended to improve its “perception and relationships” with many governments.
“But it may also tie us to specific countries, which we want to be slightly careful with,” the CEO noted.
Because it is still in the early stages of discussions. Zhao said it is too early to reveal the names of the wealth funds involved in the capital raising. “This isn’t going to be a small ticket.” It won’t be an easy task.”
Zhao is one of the world’s wealthiest crypto entrepreneurs
With an estimated net worth of $8 billion as of January 2021. Zhao is the largest shareholder in Binance.
Moreover, Binance’s daily transaction volumes increased to $170 billion in November 2021. Up from $10 billion to $30 billion two years ago, according to the CEO. Binance US, a separate American company from the global Binance exchange. Plans to raise “a couple hundred million dollars” by early 2022.
This year, global regulators have been paying closer attention to the Binance exchange. With at least a dozen governments issuing warnings against the company. Including the United States, the United Kingdom, Italy, Canada, Japan, Singapore, Germany, and others.
Moreover, it has taken a number of steps to strengthen its ties with global regulators, including suspending some of its services in certain countries and hiring high-profile executives from traditional finance.
Zhao unconcerned about illegal activity on its platform because of the company’s Know-Your-Customer (KYC). And Anti-Money Laundering (AML) policies and measures are “probably better than banks.”