Regulatory agencies have scared them! Binance admits it will establish headquarters in the future

Binance CEO Zhao Changpeng was interviewed by the South China Morning Post on the 16th, discussing a series of views on the current situation and future development of the cryptocurrency industry. When it comes to the recent regulatory issues that Binance has been under scrutiny for, Zhao Changpeng expressed a different perspective than before, admitting that Binance does indeed need a clear global headquarters.

Future Outlook on the Cryptocurrency Industry

In an interview, Zhao Changpeng was asked about his views on the future direction of the cryptocurrency industry. He expressed that it is difficult to predict, citing the unexpected trends such as the DeFi craze last year, the emerging GameFi model where players can earn money while gaming, and the recent developments in the NFT market which allows creators and artists to monetize their work. Zhao Changpeng stated:

We will continue to observe the entire industry, and when we see something becoming popular or adopted, we will contribute to it and become a part of it.

Zhao Changpeng also shared the fact that more financial institutions are entering the cryptocurrency market. He mentioned that data from behind the scenes at Binance clearly shows that many institutional investors, financial service companies like Fidelity, and traditional venture capital firms are pouring substantial funds into the cryptocurrency market.

Potential of Cryptocurrency Payments

When asked if there is a chance for cryptocurrencies to be recognized by central banks of various countries and become a universal payment method, Zhao Changpeng gave a more positive response. He noted that many countries are currently researching the feasibility of Central Bank Digital Currencies (CBDCs). Once CBDCs are issued by governments, it will increase people's acceptance of digital currencies, and governments will educate the public about digital currencies. As CBDCs become more frequently used in people's daily lives, the possibility of other cryptocurrencies being accepted as payment tools will also increase. Zhao Changpeng added:

Two years ago, if I asked someone if they accepted cryptocurrency as payment, it might sound strange. But now, when I ask the same question, people always answer "Yes," so the question is no longer as unreasonable as before.

Regulatory Challenges for Binance

Towards the end of the interview, Zhao Changpeng was asked about the ongoing regulatory challenges that Binance faces and how the platform is adjusting to secure licenses from different countries in the future. Zhao Changpeng stated:

We are now aware that for regulatory agencies, Binance must transition to a more centralized model. This is because the most common question from regulatory agencies is: "Where is your headquarters?"

Previously, Binance always told regulatory agencies that they had no headquarters, which caused many regulatory issues and even led regulatory agencies to believe that Binance was avoiding the problem. However, Zhao Changpeng explained that Binance has made many improvements in addressing regulatory issues, such as hiring senior executives with extensive experience in regulation to facilitate dialogue with regulatory agencies more effectively, and proactively meeting regulatory requirements such as KYC and AML. In the future, Binance will also establish a global headquarters, but Zhao Changpeng has not yet disclosed its location.