Binance CEO, CZ, Elaborates on Exchange's European Expansion

Binance’s CEO eyes France as a natural choice for its European expansion plan by establishing its headquarters within the local jurisdiction

By
Chung Yee
on
November 11, 2021
Category:
Blockchain News

Digital Asset Service Provider by 2022

Binance forays into Europe through France to obtain the status of a Digital Asset Service Provider by 2022, Changpeng Zhao (CZ) tells Les Echos in an exclusive interview. Binance recently announced its involvement with France Fintech, a French non-profit organization for ‘Operation Moon’. Binance commits €100 Million geared towards research and development, education, and accelerator programs. 

In the exclusive interview, CZ unveils his vision for a French-based operation - ‘There is no passport for this type of activity yet, which means that we have to get authorization for each country. As soon as possible, France will be a natural choice for a regional, and even perhaps global, head office.’ 
Source: Binance sees France as a natural choice for its operations as a regulated entity 

Binance started as a technology startup but with the exponential growth in the crypto industry, its role has transformed into a technology and financial service provider. In a short four years, it has grown to be one of the industry movers in the crypto space. Regulation and compliance have finally caught up with the crypto market as crypto-assets become mainstream.   

Binance and other crypto-related institutions have been facing an uphill task with regulators across the globe. US Securities and Exchange Commission (SEC) is reported to be investigating Uniswap and Circle a member of Centre Consortium responsible for issuing USDC stablecoin. 


Challenges From Traditional Exchanges

CZ also spoke of the recent rally which saw the price of Bitcoin and Ethereum reaching an all-time high. There are speculations that the recent rally was contributed by the approval of Bitcoin Exchange Traded Fund’s (ETF) which CZ believes only contributed marginally to the Bitcoin price. Instead, the long-term factor is the gradual decrease in Bitcoin supply. 

Binance is seeing a sharp increase in the number of users. It has jumped from 20 million to 85 million in this year. In an interview with Bloomberg, CZ also acknowledged ETF as a positive development that enables traditional exchanges to reach customers that crypto exchanges were unable to. 

Source: CZ sees the crypto market as an infinite market that has room for both the traditional exchanges and crypto exchanges to co-exist. 

CZ dismisses the suggestion from the Bloomberg host that traditional exchanges are becoming a competitor to crypto exchanges. Crypto exchanges are only able to penetrate a small percentage of the global population and if the traditional exchanges bring more customers, it is a huge win for the industry. 


Finding a Home in Europe?

Regulation is one of the major challenges faced by Binance as regulators no longer recognize decentralized organizations. Binance started its operation without a head office. However, with more than 3,500 employees worldwide and with more than 600 employees responsible for regulations, Binance is acknowledging that regulation is necessary. 

CZ confirms that Binance has plans to set up its headquarters at every level; local, regional and global. France is an ideal choice for a regional or even global head office. The recent initiative, ‘Operation Moon’, is an indication of Binance’s commitment towards growth for the crypto industry in Europe through France.  

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Chung Yee

Chung Yee has a legal background and has been involved in research works for the legal and compliance industry. Writing is his passion, centered on topics such as the blockchain and finance. His largest crypto holdings are Solana, Ethereum, and BNB Token.

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