Zhao said he would be leaving his position at Binance due to tight scrutiny by financial authorities accusing them of illicit activities. He stated the company seeks to hire former regulators but clarified he would continue to work for the project.
Binance founder Changpeng Zhao said that he would resign from Binance if there were a suitable replacement. He made that statement when global regulators were lobbying the company that he runs.
Zhao explained on Twitter that they are taking steps to further comply with local rules in all countries. Among those actions, he mentioned adding a leader with experience in regulation and legal compliance.
According to Reuters, Zhao said he would leave his position at Binance due to the tight scrutiny by financial regulators. They accused the firm of conducting illicit activities such as money laundering and terrorism financing. Regulators also caused concerns about the possibility of the exchange committing fraud against its users.
Zhao’s Replacement Is Not a Short-Term Plan
On Twitter, the CEO of the exchange denied any plans to replace him in the short term. However, he admitted that they had a pool of candidates who could replace him and always invited those inside and outside Binance.
At the same time, Zhao stated that the exchange seeks to collaborate with regulators in all countries. He considers that this would allow finding a solution that defines a fair field of action. Besides, he said that the protection of users is something important for these types of companies.
Zhao noted that they are looking for a structure that regulators can easily recognize. However, that would imply the exchange opening a headquarters, which has caused controversy in the past.
The Binance CEO commented that regulators have difficulties understanding the exchange, particularly since it does not have a headquarters. He says they are looking to establish multiple locations in different parts of the world.
The Communication with Regulators Has Not Been the Best
Changpeng Zhao admitted that Binance’s communication with regulators had not been the best in the past. Additionally, he reiterated that the company’s plans contemplate the hiring of former regulators. In this regard, he informed that they were looking to duplicate their regulatory team this year.
Furthermore, Zhao clarified that he would not stop working for the project if they got a new CEO. He said that he would continue contributing to Binance and the BNB ecosystem, even without leading it.
Binance Takes Steps to Comply with Regulators
Financial authorities in several countries have expressed concern about the exchange’s operations. They include Japan, the United Kingdom, the Cayman Islands, Germany, Italy, and Lithuania.
Additionally, some banks have decided to block the exchange and its customers from using their cards on the platform. Meanwhile, some of the company’s paying partners have chosen to dissociate from it.
Faced with pressure from regulators, Binance decided to shut down some of its cryptocurrency services. For example, the exchange suspended its operations in Ontario, Canada. They also stopped the trading of stock tokens and lowered the limits on leveraged positions.
By Alexander Salazar
