Binance is on the lookout for a place to establish its official headquarters, according to company CEO, Changpeng Zhao. This comes as the world’s largest crypto exchange in terms of trading volume is weathering increased regulatory scrutiny.
There are a slew of complaints levied against Binance by regulatory bodies of various countries. These issues range from operating illegally in certain regions, to facilitating financial impropriety such as money laundering.
Zhao once remarked that Binance had no headquarters and even seemed to suggest that his company was doing just fine without one. However, the founder of the crypto platform seems to have finally come to the realization that there might be a need for one, especially as Binance is looking to satisfy regulatory requirements.
Binance is currently making several sweeping moves in its mode of operations in a bid to meet compliance obligations. The company introduced a more thorough vetting process for registering users. In addition, Binance is also hiring several cybersecurity experts to fill key positions at the firm to ensure a wholesome user experience. The exchange’s decision to shift away from its decentralized structure with no physical headquarters may be its most popular one yet.
Zhao said this in an interview with South China Morning Post:
“As we run a centralized exchange, we have come to realize that we need to have a centralized entity to work well with regulators.
We need to have clear records of stakeholders’ ownership, transparency, and risk controls.
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.”
Image Credits: Pixabay
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