- Binance CEO Changpeng Zhao told the South China Morning Post the cryptocurrency exchange needs to become a centralized entity.
- Zhao said rebuilding as a centralized network would help it work well with regulators.
- Binance, the world’s largest crypto exchange, has been hit with regulatory action worldwide.
- See more stories on Insider’s business page.
The CEO of Binance, the world’s largest cryptocurrency exchange, says the company needs to centralize its operations to work better with regulators as it tries to win licensing approvals around the world, according to an interview with the South China Morning Post.
“As the largest player in the industry, we need to prepare ourselves for the shift. We are making changes to make it easier to work with regulators,” said Changpeng Zhao in the interview published Thursday. He said Binance needs to have clear records of stakeholders’ ownership, transparency and risk controls.
Binance has run as a decentralized entity with no formal headquarters and this year has received regulatory warnings worldwide, including from Hong Kong, Japan, and the UK, and has been facing numerous bans and restrictions. The company reportedly was under investigation by US regulators.
The exchange has been talking with regulators to land approvals. Binance in July press conference said it’s been working to become a fully compliant institution.
Binance’s rebuilding efforts come as the cryptocurrency market this year has swelled to a valuation of more than $US2 ($AU3) trillion.
Zhao also told SCMP that a roll-out of digital currencies backed by central banks could help increase the acceptance of cryptocurrencies.
“Once people start using central bank digital currencies locally, then they’ll use bitcoin to pay their friends in other countries,” he said.