Binance CEO says ready to step down amid crypto crackdown

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Changpeng Zhao, CEO of Binance, speaks during a TV interview in Tokyo, Japan on Thursday, January 11, 2018.

Akio Kon | Bloomberg | Getty Images

The boss of cryptocurrency exchange Binance says he’s ready to step down as the company seeks to become a regulated financial institution.

Speaking at a virtual press conference on Tuesday, Changpeng “CZ” Zhao said he had no plans to quit his post immediately, but that the company had a plan in place. of succession.

“We will pivot to become a fully regulated financial institution in the future,” Zhao told reporters, adding that during this pivot he would be “very open” to finding a replacement CEO with more regulatory experience.

Binance is the world’s largest digital currency exchange in terms of trading volume. However, it has come under intense regulatory scrutiny lately as authorities around the world seek to clamp down on the rapidly growing crypto industry.

In the UK, the Financial Conduct Authority has banned Binance’s UK unit from undertaking any regulated activity. Binance was one of several crypto firms that withdrew their applications for the UK’s temporary license scheme due to non-compliance with anti-money laundering requirements, the FCA said.

Regulators in Japan, Canada and Italy have also cracked down on the company, warning that it is not licensed to operate in the countries.

Planning for the future

Binance aims to establish a number of regional headquarters around the world and will seek licenses wherever they are available, Zhao said. He previously said that Binance does not have an official seat.

Zhao insisted there was no immediate plan for his succession, adding that Binance “was keeping our options open.”

“I will be honored to continue to lead Binance as a regulated financial institution until we find someone who can do a better job,” he said.

In May, Bloomberg reported that Binance was the subject of a federal investigation by the US Department of Justice and the Internal Revenue Service.

Binance said it could not specifically comment on ongoing discussions with regulators, whether in the United States or elsewhere.

On Monday, the company said it was reducing the maximum leverage or borrowed funds that users can use to trade futures, as high-risk bets left clients with heavy losses.

Earlier this month, Binance said it would no longer offer “stock tokens,” digital digital versions of stocks like Tesla, Apple and Coinbase, to shift its trading focus to other products. German regulators had warned that the instruments may have violated securities laws.

This has been a crazy year for crypto. Bitcoin, the world’s largest digital coin, at one point hit a record high of nearly $ 65,000. However, it has since contracted sharply.

The cryptocurrency briefly surpassed $ 40,000 for the first time in nearly six weeks, after Amazon said it was looking to add digital currency and blockchain experts to its payments team.

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