Binance buying a traditional bank is not a new idea, says CZ

Binance, the world’s largest crypto-currency exchange, is considering buying or establishing its own bank.

The company’s CEO, Changpeng Zhao, or CZ, revealed the news during an AMA (ask me anything) session organized by Binance-owned CoinMarketCap on July 22.

Could it happen?

During the question session, CZ noted that the idea of buying or building his own bank has been circulating in Binance for some time. When asked about Binance’s plans to „launch a bank with all the products in the world,“ CZ responded that „the idea of buying a bank came up like a thousand times.

Binance announces the acquisition of CoinMarketCap, CZ gives the scoop
CZ explained that bank acquisition ideas have been discussed, but Binance does not yet have any specific plans to announce at this time. „There are a number of initiatives or discussions that are underway,“ the CEO said, adding that Binance has several teams specializing in bank-related opportunities. CZ noted that its participation in these discussions is limited.

The Binance CEO also emphasized that the relationship between the traditional financial system and the crypto industry has undergone a major change in recent years. „Two years ago, none of the traditional financial banks wanted to work with cryptomoney exchanges,“ while today credit card companies, as well as major global banks, are focusing on crypto, CZ said.

Binance is not allowed to operate in Malaysia, says local regulator

One more channel to interact with regulators
The change is providing Binance with a more favorable position in terms of cooperation with traditional financial actors. CZ says that the exchange is considering a deeper integration with banking services. But acquiring or creating its own bank will not solve all the problems between the two industries, says Zhao.

The CEO explained:

„At the same time, buying a bank does not solve all the problems. It probably gives us an easier channel to talk to a regulator.

Malta’s financial regulator says Binance is not authorized to operate in the country

Binance apparently faces problems with financial supervisory bodies around the world. Regulators in Malaysia and Malta have publicly stated that the exchange is not authorized to operate in these countries.

After acquiring the largest crypto currency website, CoinMarketCap, in April 2020, Binance bought Swipe, a company focused on crypto to fiat Visa debit cards, in early July. The CEO of Binance CZ is known as the richest figure in the crypto industry, with net worth doubling from USD 1.3 billion in 2019 to USD 2.6 billion in 2020.