Binance’s global cryptocurrency exchange is reflecting on an initial public offering (IPO) for its US business over the next three years, said its CEO Zhao Changpeng.
“Binance.US will only do what Coinbase did,” Zhao said, according to The information.
Zhao told the news agency that a large private round of fundraising will be held in the next two months for Binance.US. This should reduce the control of the board of directors.
A profitable business
In 2020, Binance reached 2 trillion US dollars in total trading volume and its Binance or BNB currency is now the third largest cryptocurrency by market capitalization.
Binance made a profit of US $ 800 million up to US $ 1 billion profit last year.
Zhao had before they told the media that Binance was not looking to go down an IPO route. By then he had said the company was cash-sufficient, profitable and growing.
In an interview with CNBC, Zhao also said he was willing to leave his position as CEO, as the company wants to become a regulated financial institution. Although he has no immediate plans to relinquish his role, he revealed that Binance has established a succession plan.
The interest in the IPO appears as Zhao came to the Forbes list of Singapore’s 50 richest, where he ranked 22nd.
Zhao, 45, has amassed a net worth of US $ 1.9 billion (as of August 10), thanks in part to his 30% stake in Binance.
The largest cryptocurrency exchange in the world has been under pressure from global regulators including the Singapore Monetary Authority due to concerns about the use of cryptography in money laundering and the risks to consumers.
Following this series of restrictions, Zhao had expressed his intention to cooperate with global regulators and to be “fully compatible” to protect its users and the cryptographic industry.
“We have to be a licensed financial institution everywhere we operate,” Zhao said dit during a press conference held in July.
He added that if regulators expect Binance to have a headquarters, Binance will establish regional headquarters around the world. This will give them a “very easy to understand structure”. However, it revealed that Binance has not yet decided on specific locations.
Featured Image Credit: Bloomberg