Title: Binance U.S. may raise 'couple hundred million' in funding, CEO says
11/19/2021 02:40AM GMT
Binance's US unit could raise a few hundred million dollars in a funding round expected to close in a month or two, and the global cryptocurrency exchange has also decided on a new headquarters, its chief executive, Changpeng Zhao, said on Friday.
Speaking at the Bloomberg New Economy Forum in Singapore, Zhao said the company's US subsidiary has the option of seeking an IPO along the lines of a competitor, and that he would not rule out an IPO for the parent company in the future.
Binance, one of the world's largest cryptocurrency exchanges by trading volume, has come under scrutiny from regulators, with some banning the platform and others warning that it was not licenced to operate.
The US subsidiary is also reportedly under investigation.
Binance, like other cryptocurrency exchanges, has seen a huge increase in trading volumes as prices for digital assets such as bitcoin, ether, and other smaller tokens boom and gain greater mainstream acceptance.
According to UK-based research firm CryptoCompare, spot trading volume for cryptocurrencies on Binance was $789 billion in September and $454 billion in July.
Asked if his company makes billions of dollars in profit, Zhao replied, "Pretty much, yes," without giving a figure. He also said that since Binance was profitable, it could potentially charge even lower fees than its competitors, and that this was something Binance was thinking about.
On the issue of increased regulatory scrutiny and concerns about the risks faced by small traders in the cryptocurrency markets, Zhao reiterated his stance that his company was in regular discussions with regulators.