Recently, Binance founder Changpeng Zhao expressed his willingness to resign from the company if there is a replacement that can work well. This was revealed by Zhao when Binance came under pressure from global regulators.
The announcement was made this Tuesday, July 27, during a press conference. In a post on Twitter, CZ explained that this meeting with the media was aimed at “sharing the active steps that we are working hard to take to further comply with local regulations everywhere.” One of them is adding a “leader with experience in regulation and legal compliance” to his leadership.
We are actively hiring leadership with regulatory and compliance experience.
There are no immediate plans to replace me as CEO. (Journalists like to mis-quote this). I always humbly invite everyone @binance or outside to raise their hand at this job. 🙋♀️🙋♂️
– CZ 🔶 Binance (@cz_binance) July 27, 2021
Speaking to ., Zhao issued a statement to resign after Binance came under close scrutiny by financial regulators who accused the exchange of being used for money laundering. Regulators are also concerned about the possibility of victims of fraud being committed by the exchange.
Zhao’s replacement plans are not short-term
However, in the same social network the current director of the exchange denied that there are plans to replace him in the short term, although he admitted that “there is always a pool of candidates who could succeed me” and that “I always invite everyone inside and outside Binance to raise your hand for this job.
Likewise, CZ said that Binance is prepared to collaborate with regulators around the world to jointly find an optimal way out to define a fair field of action. It also clarifies that the protection of its clients is something important for the company.
“We want to have a license everywhere,” said CZ. “From now on, we will be a financial institution.” The changes will seek a structure that regulators can easily recognize and will involve Binance opening a headquarters, an issue that has generated controversy for the company in the past.
“We have a structure that is relatively difficult for regulators to understand. For example, simple things like we don’t have a headquarters, ”he told reporters. “So now we are looking to establish multiple locations in regional locations in different parts of the world. We don’t have specific locations for all of them yet. “
Communication with regulators «has not been the best»
The CEO of the exchange giant acknowledged in this context that Binance’s communications with regulators “have not been the best” in the past, and reiterated that the company’s plans also include the hiring of former regulators. A few weeks ago, Zhao had already reported that the exchange was working to double its regulatory team by the end of the year.
Regarding his succession, Zhao also clarified that the search for a new CEO did not imply that he would stop working for the project. “I will always contribute to Binance and the BNB ecosystem. I don’t have to be a CEO to do that. ”
Binance wants to make peace with regulators
In recent weeks, the financial authorities of Japan, the United Kingdom, the Cayman Islands, Germany, Italy and Lithuania, are among those who have expressed their concerns about the operations of the exchange.
Some banks have also chosen to block the exchange and / or its clients from using their cards on said platform. Meanwhile, some exchange payment partners have decided to simply cut ties with the company.
In response to pressure from regulators, Binance has chosen to shut down some of its cryptocurrency services, the exchange has suspended its operations in Ontario, Canada. It has also canceled its stock token trading service and started lowering its leveraged position limits.
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