Binance cryptocurrency exchange will transform itself into a licensed entity with a centralized business. First and foremost the company wants to win global regulators' graces.
Binance CEO Changpeng Zhao said that they could abandon the policy of "decentralized head office" under pressure from global regulators. He acknowledged that the idea of a decentralized global business organization had hampered regulatory approval in jurisdictions with clear licensing regimes.
“Regulators usually ask us very simple questions, the answers to which sound quite amusing to them. They ask us, 'Where is your headquarters? We answer that we don't have one. This is not the best way to interact. They don't understand how to work with us and probably think we are too dodgy,” the head of Binance explained.
However, experts believe that it is not the company's desire, but rather specific requirements on the part of regulators. Over the past few months, financial regulators in several countries, including the UK, the Netherlands, Italy, Poland, Japan, Thailand, Hong Kong, Singapore, South Africa, and several others, have issued warnings to investors regarding the exchange's activities.
“For a regulated exchange business, we need centralization. We need a single legal entity with clear capitalization tables, transparent investors, a proper board and governance, clear KYC/AML procedures, and a risk control system”, the Binance founder said.
