Binance is reportedly looking to bring in global wealth funds as new equity partners, opening up the possibility for them to contribute capital.
Binance, the world’s biggest cryptocurrency exchange, is allegedly in discussions to sell a share in the firm to sovereign global wealth funds.
Binance is now seeking worldwide capital to enhance connections with regulators, in addition to anticipated “mega funding” for its US-based subsidiary Binance.US, according to Binance CEO Changpeng Zhao in a Tuesday interview with The Financial Times.
Several financial authorities across the globe have been tightening down on Binance this year, according to Zhao, and the impending financing is intended to repair its “image and relationships” with various nations.
“However, it may bind us to certain nations, something we want to be cautious about,” the CEO said.
Because Binance is still in the early stages of talks, Zhao said it is too early to reveal the identities of the wealth funds engaged in the capital raising. “This isn’t going to be a tiny ticket.” It won’t be an easy task.”
Zhao is one of the world’s wealthiest persons in the cryptocurrency sector, with an estimated net worth of $8 billion as of January 2021. Zhao is the largest shareholder in Binance.
Binance’s daily transaction volumes increased to $170 billion in November 2021, up from $10 billion to $30 billion two years ago, according to the CEO. Binance.US, a distinct American company from the global Binance exchange, plans to raise “a few hundred million dollars” by early 2022.
This year, global authorities have been paying closer attention to the Binance exchange, with at least a dozen nations issuing warnings against the company, including the United States, the United Kingdom, Italy, Canada, Japan, Singapore, Germany, and others.
With a new employee, Binance continues its effort to become a licensed cryptocurrency exchange.
Binance has made a number of steps to strengthen its ties with global authorities, including suspending certain of its services in specific regions and recruiting high-profile executives from conventional finance.
Zhao is believed to be unconcerned about criminal activity on Binance’s platform since the company’s Know-Your-Customer (KYC) and Anti-Money Laundering (AML) rules and controls are “probably better than banks.”