Zhao Changpeng, the CEO of the world’s largest crypto exchange Binance seems to have changed his mind on running a decentralized headquarter concept to become centralized after different warnings from world financial regulators.
Changpeng, who said this in an interview with the South China Morning Post, said the move is essential to work well with world regulators.
“As we run a centralized exchange, we have come to realize that we need to have a centralized entity to work well with regulators,” he said.
Throughout its four years of operation, Binance has been running a decentralized system, where it does not have a headquarter, with a team working from everywhere, but Changpeng admits that the model gives regulators a wrong impression about them.
“The regulators ask us where’s your headquarters, and our responses is, well, we don’t have headquarters. That doesn’t go well with regulators. They don’t know how to work with us. Sometimes they even think we are dodgy obviously,” Zhao said.
In the last 24 hours, bitcoin is down by 0.57%, with a current price of $47,606.24 as at the time of writing this. Within 24 hours, bitcoin dropped to $47,374.50 low and $48,485.80 high. The trading volume of bitcoin in the last 24 hours is $1.01B. The current market capitalization of bitcoin is $892.10B. Currently, $1.81M bitcoins is in circulation.
Stats and Image from Coin Desk
Changpeng, who now seems to be bowing to pressure, said they are making changes to make it easier to work with regulators.
Binance has recently been the target of regulatory bodies in countries like Singapore, Hong Kong, the UK, Japan, Italy, the Cayman Islands, Malaysia, Holland. They sent a series of warnings to their citizens against the legality of the exchange’s operations in their countries.