Binance Pressed By Global Regulators, Changpeng Zhao Ready To Resign If There Is A Substitute That Works Better

JAKARTA – Recently, the founder of Binance, Changpeng Zhao, expressed his readiness to resign from the company if there is a replacement who can do a better job. Zhao said this when Binance came under pressure from world regulators.

Financial regulators and governments often tighten regulations to monitor the crypto industry. Such scrutiny often poses a hurdle for crypto trading companies like Binance. On the other hand, Binance is also considered not to meet the standards of financial regulators as happened in the UK. This often makes it difficult for Binance itself.

Zhao issued a statement resigning after Binance came under intense scrutiny by financial regulators who accused the exchange of being used for money laundering. Regulators are also concerned about possible victims of fraud by the exchange.

A number of financial authorities from various countries including the UK, Germany, Italy, Lithuania, Hong Kong, Japan, and Thailand expressed their concerns about the Binance crypto exchange.

Zhao has openly said that he is trying to build relationships with regulators. He will also seek their approval to set up a head office even though Zhao thinks this violates the decentralized structure.

In addition, the founder of Binance also revealed that he will not leave the company soon. On the other hand, he stated that he was ready to hand over the leadership of the company to his successor.

"This is not a situation where I am forced to step down," Zhao said.

He also added that he was ready to hand over the reins to a successor who could do a "better job."

“I am a technology entrepreneur. We are doing this rotation to become a regulated financial institution and I would be very open to finding leaders with a strong regulatory background,” he said.

Amid the pressure, Zhao revealed that he would seek regulatory approval to operate and establish a regional headquarters.

“We want to get permission from anywhere… From now on, we will be a financial institution,” added the Binance boss.

Binance is a crypto trading platform that often provides derivative trading services. In response to scrutiny from global regulators, Binance was forced to scale back some of its services, especially on high-laverage crypto bets and shut down all tech company tokens that are tied to shares.

Data from British research firm CryptoCompare states that trading volume on Binance has increased almost tenfold from last year, increasing to US$668 billion (equivalent to Rp.9.6 quadrillion) in May 2021.

In addition, data from Sensor Tower states that the Binance application has been downloaded 1.8 million times throughout 2021. While the total downloads have reached 2.2 million times.

In recent months Binance has been banned from operating in the UK, Ontario Canada and the Cayman Islands.