• September 29, 2023


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Binance CEO Changpeng Zhao Denies Company’s Plans to Buy a Bank

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Changpeng Zhao (CZ), the head of the Binance crypto exchange, noted that their company is not interested in acquiring any banking institutions because of regulatory complexity and the capital needed.

He explained that even if the company did buy one, the US correspondents are normally limited when it comes to handling cryptocurrency and various restrictions would still remain, including being able to lose a bank’s license quickly.

Additionally, CZ pointed out the high costs and low profitability of such ventures, as well as the difficulty in obtaining the appropriate license.

He concluded his statement saying that he didn’t want to partake in such a risky business where the client’s money is being loaned out with the chance of the institution declaring itself bankrupt and the government intervening.