Binance Crypto Exchange Refuses To Trade Stocks, Here's Why!

Binance does not want to trade shares on its platform. (photo: doc. Cointribune)

JAKARTA – Binance as one of the largest crypto exchanges in the world does not seem interested in trading shares on its platform. This was conveyed by Binance CEO Changpeng Zhao recently.

The figure who is familiarly called CZ said that Binance will aim to be a pure Web3 company and not risk the company to trade assets other than digital assets. In addition, Binance is also planning to acquire a number of potential companies in the crypto industry.

The crypto market's downturn in recent months has shaken the stability of the crypto industry. The biggest crypto trading companies such as Coinbase, Crypto.com, Robinhood, and others are starting to be affected by the bear market.

Even so, Binance seems unaffected by the decline in the crypto market. The company, founded by Changpeng Zhao, has actually announced hiring and plans to expand through a number of potential acquisitions.

Furthermore, CZ confirmed that Binance is not interested in offering stock trading on its platform. He added that Binance would become a full-fledged Web 3 company.

A number of crypto trading platforms have been trading stocks and cryptocurrencies such as Robinhood, eToro, and others. Because they see an interesting mix of traditional stock assets with all-digital crypto assets. Additionally, in May 2022, the FTX US crypto exchange will also reportedly be trading shares on the platform.

However, Changpeng Zhao doesn't want to rush into other crypto exchanges. According to him, swapping equities would not be in line with Binance's philosophy.

“Some exchanges want to return to stock trading. We have no plans to trade stocks. We are not running a fiscal brokerage shop any time soon. We are a pure Web3 company. We're not going back, we're moving forward," CZ said, quoted by Decrypt.

Various crypto exchanges were shaken by the decline in the crypto market that lasted for several months in 2022. As a result, Coinbase and other crypto exchanges announced cuts in their workforce.

Bear markets have a negative impact on most crypto exchanges, but for other crypto exchanges such as Binance and FTX who see the downturn in the crypto market as a huge opportunity for company expansion. On the other hand, Binance did not announce in more detail which company it will acquire in the near future.