Binance, the world’s largest cryptocurrency exchange, is reportedly in talks with global sovereign wealth funds to sell a stake in the company.
In addition to the planned “mega-financing” of its US business Binance.US, Binance is now also seeking global funding to improve relations with regulators, Binance chief Changpeng Zhao told the Financial Times on Tuesday.
Zhao said the forthcoming funding is aimed at improving his “perception and relationship” with many governments, as several financial regulators around the world have taken tough action against the Binance platform this year.
“It can also put us in touch with some countries that we want to be a little careful about,” said the CEO.
“Since Binance is currently in the early stages of discussions, it is too early to reveal the names of the mutual funds involved in raising capital,” Zhao said. “The size of this ticket will be significant. It will not be an easy process.”
As the largest shareholder in Binance, Zhao is one of the richest people in the world in the cryptocurrency industry, with an estimated fortune of $ 8 billion as of January 2021.
Binance’s daily transaction volume grew to $ 170 billion in November 2021 from $ 10 billion to $ 30 billion two years ago, according to the CEO. Binance.US, a US-based company operating separately from the global stock exchange Binance, plans to raise “several hundred million dollars” by the beginning of 2022.
Binance is increasingly being monitored by global regulators this year, and at least dozens of governments have issued warnings against the company, including countries such as the United States, Britain, Italy, Canada, Japan, Singapore, Germany and others.
About the topic: Binance continues to strive to become a regulated crypto exchange with a new set
Binance has taken a number of steps to improve relations with global regulators, stopped some of the services in some countries and hired top executives from traditional financial institutions.
Zhao reportedly said he was not concerned about illegal activities on the Binance platform because the company “could have been better than the banks” in terms of Know Your Customer (KYC) policies and procedures and anti-money laundering (AML) policies.