Binance US may raise ‘couple hundred million’ in funding, CEO says

Synopsis

Binance US has the option to go for an IPO a la Coinbase Inc., CEO Changpeng Zhao says, without ruling out listing the parent company in future.

Binance CEO Changpeng ZhaoBengaluru: Binance’s US unit may raise a “couple hundred million” dollars in a funding round set to close in a month or two, CEO Changpeng Zhao said on Friday, and that the global cryptocurrency exchange has also decided on its new headquarters.

Speaking at the Bloomberg New Economy Forum in Singapore, Zhao said the firm’s US affiliate has the option to go for an initial public offering using rival Coinbase Inc. as an example, and that he was not ruling out listing the parent company in future.

“I think it’s a couple hundred million dollars,” Zhao, who is also known as CZ, said at the event, adding that he doesn’t know the exact number of the proposed fresh funding. “For an IPO perspective, it’s probably best to have a few rounds of financing before that.”
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Binance, one of the world’s biggest cryptocurrency exchanges by trading volumes, has come under scrutiny from regulators, with some banning the platform and others warning it was unlicensed to operate. Its US affiliate is also reportedly under investigation.

Crypto exchanges, including Binance, have seen trading volumes soar as prices of digital assets, such as bitcoin, ether and other smaller tokens, boom and find greater mainstream acceptance. According to UK researcher CryptoCompare, Binance’s spot cryptocurrency trading volumes totalled $789 billion in September and $454 billion in July.

When asked whether his company was making billions of dollars of profit, Zhao replied, “pretty much, yeah” without providing a number. He also said that since Binance was profitable, it could potentially charge even lower fees than rivals and that is something Binance was thinking about.

Speaking on the issue of heightened regulatory scrutiny and concern around risks that retail traders were exposed to in cryptocurrency markets, Zhao reiterated his stance that his company was in regular talks with regulators. “We want regulation, I am not a complete libertarian, I’m not an anarchist,” he said.

Zhao also said Binance will “very shortly” announce where the company has decided to locate its headquarters and was communicating its plan to regulators first.

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Updated: 11/19/2021 — 16:00