Changpeng Zhao: Binance will abandon its "decentralized" business model

The casino exchange Binance is ready to abandon the policy of "decentralized headquarters" under pressure from global regulators. This was announced by Binance CEO Changpen Zhao in a conversation with the South China Morning Post and will transform itself into a licensed entity with a centralized business. It's hard to believe another tale of a fraudulent entity that has not had a head office in 4 years and whose business model involves outright fraud with customer money, hides its legal structure and deceives financial regulators around the world.

Changpeng Zhao responded to a question about how Binance intends to license its operations in jurisdictions where necessary:

"Four years ago when we started, we wanted to leverage a decentralized model by deploying decentralized teams everywhere. But we do run one centralized exchange, which is the largest element of our business. Now we've come to the realization that for regulators, we need to be centralized."

Changpeng Zhao also noted that the very statement that the company does not have a head office immediately makes regulators look at it negatively.

"Regulators usually ask us very simple questions, and our answers can be kind of ridiculous. Regulators ask where our head office is, and we say we don't have a head office. That doesn't sit well with them. They don't know how to work with us. Sometimes they even think we are trying to evade," the Binance CEO continued.

Forgetting to tell Changpeng Zhao how communication with financial regulators takes place, the Financial Conduct Authority (FCA) of Great Britain published a material which clearly demonstrates the level of communication of Binance and the absolute unwillingness to cooperate with the financial authorities:

First Supervisory Notice Binance Markets Limited - ScamBinance.com by Scambinance.com on Scribd

"As a centralized exchange company, we need to be centralized. That's what the regulators expect. We have to have a centralized entity behind it all, with clear capitalization tables, explicit investors, a proper board of directors, proper governance, very transparent customer identification, anti-money laundering and risk controls," Zhao added.

According to ScamBinance - another promise that will not be fulfilled, or fulfillment will be wanting - as always at Binance. For example, the way Binance almost banned futures trading in Brazil.

23.09.21

Search by keyword: