Binance, the world’s largest cryptocurrency exchange, is said to be in discussions to sell a share in the firm to sovereign global wealth funds.
In a Tuesday interview with The Financial Times, Binance CEO Changpeng Zhao revealed that in addition to the expected “mega investment” for its US-based subsidiary Binance.US, the company is now looking for worldwide capital to bolster its connections with regulators.
Besides, as several financial regulators across the world have been tightening down on Binance this year, Zhao claims that the impending financing will help the company’s “image and relationships” with many nations.
“However, it may bind us to certain nations”, the CEO cautioned.
On the other hand, Zhao explained that because Binance is still in the early stages of talks, it is too early to reveal the identities of the wealth funds engaged in capital raising. “This isn’t going to be a cheap ticket.” It’s not going to be an easy task.”
Binance.US plans to raise a “few hundred million dollars”
In fact, Zhao is one of the wealthiest persons in the cryptocurrency sector. With an estimated net worth of $8 billion as of January 2021. Zhao is the largest shareholder in the exchange.
Binance’s daily transaction volumes jumped from $10 billion to $30 billion in November 2021, according to the CEO. Moreover, by early 2022, Binance.US, the American subsidiary of the global Binance exchange, plans to raise a “few hundred million dollars.”
This year, at least a dozen nations have issued warnings against the Binance exchange. Including the United States, the United Kingdom, Italy, Canada, Japan, Singapore, Germany, and others.
Binance has made a number of steps to strengthen its ties with international regulators. Including suspending certain of its services in specific regions and recruiting high-profile executives from traditional finance.
Zhao allegedly stated that he was unconcerned about criminal behaviour on the platform. Since the company’s Know-Your-Customer (KYC) and Anti-Money Laundering (AML) rules and safeguards were “probably better than banks”.