Binance wanted to operate without a headquarters but will not do so due to the concerns of some regulators.
Binance’s decentralized HQ concept will not be implemented
Cryptocurrency exchange Binance will no longer pursue its desire to run a decentralized headquarters. This is because some regulatory agencies believe it is a dodgy move from the crypto exchange.
Binance CEO Changpeng Zhao revealed this during an interview with the South China Morning Post yesterday. He said, “As we run a centralized exchange, we have come to realize that we need to have a centralized entity to work well with regulators. We need to have clear records of stakeholders’ ownership, transparency and risk controls.”
Zhao stated that the exchange’s desire to have a global, decentralized operation with no headquarters didn’t go down well with regulators. “Four years ago, when we started it, we wanted to embrace the decentralized model, so we wanted to have decentralized teams everywhere. But we do run one centralized exchange, which is the biggest part of our business. Now we have come to realize that for the regulators, we need to be centralized,” he added.
The Binance CEO stated that not having a headquarters could put Binance in trouble with the regulators as they might believe the crypto exchange has something to hide.
Binance has come under regulatory pressure in recent months
Binance’s problems with financial regulators in various parts of the world are no longer a secret. The crypto exchange has received warnings from regulators in the UK, the Netherlands, Spain, Singapore, Italy and Hong Kong, among others.
The cryptocurrency exchange has made some changes to how it operates to ensure it abides by the regulations put in place in various countries.