Binance’s subsidiary, Binance.US, is looking to follow the path of Coinbase as it is targeting an initial public offering (IPO) in 3 years, according to Binance CEO and founder Changpeng Zhao.
In an interview with tech publication media outlet, The Information, Changpeng Zhao, popularly known as ‘CZ’ revealed that Binance.US is planning to close a large private funding round in the next two months that would allow the firm to become more independent from its parent company.
The CEO of the largest cryptocurrency exchange by volume stated that he is confident that the parent company will survive the ongoing regulatory crackdown by global regulators. He then added that Binance.US will move towards a public listing in three years stating that “Binance.US is just going to do what Coinbase did.” He mentioned that Binance generated between $800 million and $1 billion in profit last year.
When asked about a clear sense of what the timing would be for Binance.US’ initial public offering, Zhao said it depended on the business’ growth. He stated, “So if the business can grow consistently over the next three years, then three years should be sufficient for an IPO. If there’s a prolonged bear market for, I don’t know, maybe three or five years, then it may be a little bit longer.”
Changpeng Zhao spoke about the idea of its U.S. affiliate eyeing an IPO during his time at the Redefine Tomorrow event in July.
What you should know
The news comes amid more global regulators raising concerns about Binance’s operations. Binance has been facing a lot of regulatory issues from various countries including the U.S, U.K, Italy, Germany, only to name a few.
The latest comes from the Monetary Authority of Singapore (MAS), who added Binance’s website to its investor alert list yesterday. The list provides a record of unregulated persons who “may have been wrongly perceived as being licensed or regulated by MAS.”
However, Binance seems to be striving to be more regulatory compliant as the company has been making big moves to improve its regulatory team. Last week, Binance hired Greg Monahan, former US Treasury Criminal Investigator, as Global Money Laundering Reporting Officer (GMLRO). This is one of many appointments which includes Jonathan Farnell as Director of Compliance, former FATF executives Rick McDonell and Josée Nadeau as compliance and regulatory advisors and former US Senator Max Baucus as policy and government relations advisor.
Binance stated it has improved its regulatory team by 500% since 2020 and it plans to improve the team by another 1000% before the end of the year.
Binance’s native token, BNB, is currently trading $492.50, up 2.24% for the day.
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