Changpeng Zhao (CZ), CEO and founder of popular cryptocurrency exchange Binance disclosed in a recent interview that its U.S. arm may go public in the next three years.
Binance.US’ Growth to Determine its IPO Timing
According to the Binance boss, the planned Initial Public Offering (IPO) for its US exchange will depend on the company’s growth within the stated period.
“If the business can grow consistently over the next three years, then three years should be sufficient for an IPO, but if there’s a prolonged bear market for, I don’t know, maybe three or five years, then it may be a little bit longer,” CZ noted in a Zoom interview with The Information.
During the interview, CZ disclosed that the U.S. branch of Binance is planning large private fundraising in the next two months to boost its valuation and also keep hopes of an early IPO alive.
Should the fundraising be successful, CZ’s influence on Binance.US’s board will be significantly reduced, the report added.
Crypto Exchanges Eye Coinbase’s Public Move
Since Coinbase went public earlier this year, other cryptocurrency exchanges have announced plans to go public, as they hope to accelerate the growth of the cryptocurrency industry.
Recall that Coinbase’s direct listing on Nasdaq sparked wild jubilations in the cryptocurrency community, with many suggesting that the exchange’s public listing was for crypto what Google’s IPO was for the internet.
Commenting on Coinbase’s public listing, CZ said that “Binance.US is just going to do what Coinbase did.”
However, he suggested that Binance has a good edge over Coinbase in the market when it comes to transaction fees.
According to Binance CEO, the exchange’s fees are five times cheaper compared to what is offered on Coinbase. Thus implying that more clients will want to use Binance to trade other than the San Francisco-based exchange Coinbase.
Binance Regulatory Woes
Binance’s intention to take its U.S. branch public comes amid a series of regulatory clampdowns the exchange has received from regulators from different parts of the world.
As reported, the UK Financial Conduct Authority (FCA) has warned that Binance is not allowed to engage in regulated activity within its jurisdiction, adding that the exchange must comply with a set of requirements before it can continue operating in the UK.
However, in an update last month, the FCA noted that the exchange had complied with all the requirements stated in June.
