Binance Founder Changpeng Zhao Says Its US Crypto Exchange Arm Targets IPO in 3 Years: Report

Binance has come under pressure from regulators due to concerns over the use of cryptocurrency in money laundering and risks to consumers.

By Reuters | Updated: 2 September 2021 12:34 IST

Binance Founder Changpeng Zhao Says Its US Crypto Exchange Arm Targets IPO in 3 Years: Report

Zhao said Binance.US is set to close on a large private fundraising round

Highlights

Binance said last month it would demand stricter background checks
Binance has scaled back its product offerings
Potential for crypto exchanges to launder money has worried regulators

Global cryptocurrency exchange Binance's founder and chief executive officer Changpeng Zhao said that its US arm could have an initial public offering in the next three years, The Information reported on Wednesday.

"Binance.US is just going to do what Coinbase did," Zhao said, according to the report.

Binance.US is also set to close on a large private fundraising round in the next two months that should reduce his control of the board, Zhao said in an Zoom interview with The Information.

BitConnect Founder Charged With $2-Billion Cryptocurrency Fraud

Binance generated $800 million (roughly Rs. 5,840 crores) to $1 billion (roughly Rs. 7,300 crores) in profit last year, according to Zhao, the report added.

Last month, Brian Brooks, chief executive of the US arm of the cryptocurrency exchange resigned just three months after taking up the role.

The exchange has come under pressure from regulators across the world due to concerns over the use of crypto in money laundering and risks to consumers.

Binance Tightens Anti-Money Laundering Checks After Regulatory Pressure

Binance said last month it would demand stricter background checks on customers to bolster efforts against money laundering, with immediate effect.

The exchange, whose holding company is registered in the Cayman Islands, has scaled back its product offerings, including leveraged trading and tokens linked to equities, and has said it wants to improve relations with regulators.

The potential for cryptocurrency exchanges to launder money has long worried regulators, with US Treasury Secretary Janet Yellen and European Central Bank President Christine Lagarde among those this year to voice concerns.

The Dutch central bank on Monday said Binance was not in compliance with its anti-money laundering and anti-terrorist financing laws.

Binance said on its website that users would have to complete a verification process to access its products and services. Those who have not done so will only be able to withdraw funds, cancel orders, and close positions.

Until now, document-based ID checks at Binance were only required for users who wanted higher limits on trading. Users will now have to upload an ID card, driver's licence or passport to prove their identity, Binance said.

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