The Binance World Cryptobria is negotiating with sovereign welfare funds on attracting investments, trying to improve relations with the authorities of the states and smooth the aggressive policies of the regulators. The head of the company Chanpen Zhao in an interview with Financial Times was told about the method of interaction.
This year, the company faces growing pressure from the authorities and finds that investment of funds can improve its image in the eyes of governments of different countries and reassure them, indicated Zhao. “However, it will also connect us with specific countries, and in this regard we would like to be careful,” said the head of BINANCE.
Zhao also said that the organization leads preliminary negotiations on attracting capital of several sovereign funds, but what specific funds are speaking, he did not specify, adding that the process will be unprecedented.
Binance decision accepted against the backdrop of headquarters in such cities such as Singapore and Dubai. The company provides services to consumers around the world, but faces criticism of regulators due to high-root financial products, including trafficking derivatives. Until recently, Binance hid, where its founder is located, and insisted that she has no standing headquarters.
It was established in China, but left the country in 2017 after the cryptochember ban and organized a number of offices in different cities. According to Zhao, the ban on the mining cryptocurrency in China testifies to the government’s intention to create obstacles to technologies competing with his own: Beijing is actively promoting the digital currency of its central bank.
On September 24, People’s Bank of China (analogue of the Central Bank) banned any activity related to cryptocurrency. After that, BINANCE, like other major stock exchanges, eliminated the registration of Chinese users. The company said that the application is not available for loading in the country. “Binance is very serious about their obligations and seeks to follow the requirements of local regulators, wherever we work,” the company’s representative said.
With the pressure of regulatory financial bodies around the world, the exchange is facing the background of their concern about the weak protection of users, as well as the use of cryptocurrency for money laundering. Against the background of the requirements of different states, the Exchange in August announced the adoption of a more stringent user verification rules, according to which new clients will not be able to access the products and services of the trading platform without confirmation of the person.