In a recent virtual press conference held by the cryptocurrency exchange Binance, the company CEO indicated his willingness to step down from his role and appoint a new CEO amid tightening regulations.
Founder and CEO of Binance, Changpeng Zhao, expressed his intent to quit and replace himself with a person with a strong regulatory background.
“There is always a pool of candidates who could succeed me. We are looking for someone with a strong regulatory background to step in and be CEO.”
He said that while he has no plans to quit immediately, a succession is inevitable.
“I will always contribute to Binance and the BNB ecosystem. I don’t have to be CEO to do that.”
Regulated financial institution
The company held a press conference where the CEO announced that Binance is going forward to become a fully regulated financial institution. The move was seen as essential amidst the latest series of regulatory warnings against the company from countries such as Japan and the UK.
The financial authority of the UK banned Binance from undertaking activities in Britain. The Securities and Futures Commission of Hong Kong (CFC) and the Financial Services Agency of Japan have also issued warnings against the company for providing its services without obtaining a relevant license.
Zhao said in a statement:
“We have a structure that’s relatively hard to understand for regulators. For example, simple things like we don’t have a headquarters. So we are now looking to establish multiple headquarters in regional headquarters in different parts of the world. We don’t have specific locations for all of them yet.”
Binance is the largest virtual currency exchange by trade volume. Amid growing regulations against the company, Binance announced a series of measures including initiating processes to obtain licenses in countries such as EMEA, Asia-Pacific, and Latin America.
The company recently cut down its leverage limit to 20x and slashed its withdrawal limit from 2 BTC to .06 BTC for unverified users. It has also announced the launching of a new Tax Reporting Tool API on its website. The statement read:
“Binance will be launching the Tax Reporting Tool at 2021-07-28 04:00 AM (UTC), a new API tool to allow Binance users to easily keep track of their crypto activities in order to ensure they are fulfilling the reporting requirements laid out by their regulatory bodies.”
Zhao reasserted that the company will continue to work with regulators and regularly introduce new frameworks to create sustainable solutions for user protection.