Changpeng Zhao – CEO of the digital asset exchange Binance – revealed that the company seeks to obtain a license from the German regulators and settle in Europe’s largest economy. He also touched upon the recent market decline, saying it has its cycles and a potential “crypto winter” will not last forever.
After France, Binance Now Eyes Germany
At the beginning of this month, the largest cryptocurrency platform – Binance – scored a major victory in its expansion plans, securing the approval of the French financial watchdogs. Specifically, the exchange became registered as a Digital Asset Service Provider (DASP) in France by the nation’s top regulator – the AMF.
CZ asserted that the trading venue’s main priority is its users as they can now have “further confidence in Binance France as a trusted DASP.”
In today’s appearance (May 18) at the Finance Forward Conference in Hamburg, the executive outlined that the company’s next expansion target is Germany:
“Germany is an important market. We are building a compliance team and want to apply for a license.”
It’s worth noting that Binance had to halt providing derivatives services to users based in Germany, Italy, and the Netherlands last year, but the company seems in a better position now.
CZ also gave his two cents on the recent price decrease of most cryptocurrencies, saying such plunges are part of the market’s nature and have occurred multiple times:
“A winter might come. But the market has its cycles, and we’ve seen it several times.”
Speaking on the matter was also the investor and Internet entrepreneur – Jan Beckers – who thinks “boom times” will return in the future:
“The recent crypto crash signifies a cooling off for neo-brokers’ business models. But the boom times will come back. I would still be cautious at the moment, though. We see a rebound in the market over the next 12 months.”
Binance Strengthening its Legal Division
As CryptoPotato reported earlier this week, the exchange is looking to reinforce its legal and compliance team in case of possible issues with global regulators. Binance US aims to strengthen its unit by hiring an employment counsel and paralegal, while Binance Holdings Ltd. has 41 positions open across its legal division.
The platform has faced enhanced criticism from global watchdogs in the past year regarding its operations. For example, the UK’s FCA argued that Binance poses a “significant risk” and cannot be monitored effectively. Shortly after, South Africa’s FSCA warned that the company does not have the necessary registration to provide brokerage services or give investment recommendations in the nation.
Despite the enhanced criticism, Binance has managed to settle the controversy and currently faces no lawsuits.