Despite US government pressure, Binance CEO Changpeng Zhao is seeking accommodations from regulators and has moved to Dubai. The move signals a broader change in strategy for Zhao, who is negotiating with regulators to secure market share. While many crypto exchange operators ignore government demands, Zhao is attempting to negotiate with regulators while remaining committed to the company’s mission of improving financial markets.
Binance is an exchange for trading and you can also use bitcoin trading software to trade cryptocurrencies. Because crypto exchanges are deeply entangled with global finance, regulators seek to make examples of bad actors. While the entrepreneur may be seeking accommodation, he could find himself in criminal investigation and the richest man in the world.
The move comes at a time when US regulators are targeting the cryptocurrency industry, and the largest exchange in the world, Binance, is looking to relocate to Dubai as its CEO seeks accommodation with the government. Zhao is no stranger to breaking the law, ignoring government requests, and working with governments to secure market share.
However, as the crypto market is so interconnected with worldwide finance, Zhao may be facing criminal charges rather than a mere lawsuit. And in the worst-case scenario, the richest man on earth could be facing criminal charges.
A spokesperson for Binance said the company follows a rigorous process when listing new companies. The company also has a rigorous process to ensure that its listings are genuine. But the message from Binance is to buy Dogecoins and get rich. The company’s listings are subject to rigorous scrutiny, which may put users at risk of having their accounts frozen.
In addition to the UAE move, Zhao’s other recent moves included relocating the Binance office to Vancouver. The Binance UAE office had been closed earlier while US regulators were targeting the exchange. The company has not commented on these cases in its interview with reporters. The company’s CEO and a senior executive have been sworn to secrecy about their plans.
US regulators are targeting cryptocurrency exchanges in the wake of Ripple’s lawsuit. Last December, the SEC began legal action against the company, alleging securities violations. The company has denied the allegations, arguing that the five-year statute of limitations barring any claims against it has expired. Despite the ongoing legal battle, the company is experiencing a significant increase in new users.
Last year, the US government arrested three people connected with cryptocurrency exchanges, including one of the country’s most influential men. The suspects were accused of laundering $300 million in bitcoin. They were connected to the Lazarus Group, a group of North Korean state-sponsored hackers suspected of the Sony breach, the WannaCry malware attacks, and $2 billion stolen from banks.
Despite this legal setback, the two countries have already agreed to sign contracts worth $3 billion. Meanwhile, the US government has already issued subpoenas to the biggest cryptocurrency exchange in the world, Binance. In a separate lawsuit, Ripple executives filed a request for a court to block the SEC’s investigation. This move has led to an increase in Bitcoin’s spot price by about 13%.
To circumvent regulatory scrutiny, Binance’s richest man has moved to Dubai. He originally grew rich by offering unregulated bets on smaller digital tokens but later expanded into highly leveraged financial products tied to the value of digital tokens. While these products are illegal in many jurisdictions, one loophole evades regulation: Binance does not operate in a jurisdiction.
The exchange’s growth has been explosive. In just six months, Binance became the largest cryptocurrency exchange in the world, eclipsing its competitors. In the following six months, it maintained its top spot. Hundreds of firms and execs have sued Binance. The US Department of Treasury is now considering a similar measure but has yet to issue an official statement.
US regulators are targeting the cryptocurrency industry, the company’s owner has declared it a decentralized firm. A Cayman Islands-based agency owns Binance’s name. It has not disclosed its shareholders. Its subsidiary, Binance Capital Administration, is registered in the British Virgin Islands. It has purchased the crypto information website CoinMarketCap for $400 million.
Alexia is the author at Research Snipers covering all technology news including Google, Apple, Android, Xiaomi, Huawei, Samsung News, and More.