September 2, 2021

Changpeng Zhao: Binance.US will IPO in the next three years

Changpeng Zhao: Binance.US will IPO in the next three years

In the next three years, the U.S. division of the cryptocurrency exchange Binance may conduct a public offering on the U.S. stock market. Changpeng Zhao, the head of the company, told The Information.

Binance.US is going to do the same thing as Coinbase,  he said.

The unit will close a "large round of private financing" in the next two months, he said. The deal would reduce the CEO's control of the company's board of directors.

Zhao said the exact timing of the offering will depend on market conditions and the growth of Binance.US's business.

If the business can grow steadily over the next three years, that would be enough time for an IPO. If we enter a bear market, which will last, I don't know, three or four years, then it may take a little longer, he explained.

Zhao first talked about Binance.US's plans to enter the stock market in June 2021. At that time, he said the division was currently focused on business development and growth.

In March, the CEO said that the main platform Binance has no plans to hold an IPO. According to him, the company has no problems with finances, so an offering is not considered.

Zhao's statement came amid regulatory problems at the bitcoin exchange.

In June, the U.K. Financial Services Authority banned Binance Markets Limited from any regulated activity in the country without prior written approval.

The Cayman Islands began an inspection of the exchange, Thailand and Hong Kong accused the company of operating without a license, and Japan issued another warning to the company.

Polish regulators warned consumers about the risks of interacting with the platform, while Italy and Malta - about unregulated activities of Binance.

In late July, the Securities Commission of Malaysia announced enforcement action against the trading platform "for illegal management of a digital asset exchange."

In August, the Central Bank of the Netherlands announced that Binance does not have registration to provide services in the country.

In September, the Monetary Authority of Singapore warned investors that Binance's activities are not controlled by the regulator

As a reminder, the bitcoin exchange is considering raising funds from Singapore's public funds at a valuation of $200 billion, according to Colin Wu.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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