Binance to Increase Mergers & Acquisitions in Other Sektors

Binance is branching out – at least according to a recent Financial Times report. The world’s largest crypto exchange is planning a mergers and acquisitions spree into new markets amid ongoing regulatory scrutiny.

According to Binance CEO Changpeng “CZ” Zhao, they “want to identify and invest in one or two targets in every economic sector and try to bring them into crypto.” The enigmatic exchange founder thinks that pushing a company in the media industry to embrace crypto will lead others to follow.

The report added that Binance’s core business – which is profiting from crypto transaction fees – is coming under increasing pressure from policymakers around the world that want to regulate the industry.

Branching out from Binance

Zhao stated that Zhao was looking to hire compliance and enforcement professionals in order to resolve the issue. It also uses customer-checking software that banks use and demands a lot of KYC (know your customer) documents from its customers. Binance UK has 70 employees who are focused exclusively on regulatory issues, he said.

The United Kingdom has been a major problem for the company. Its Financial Conduct Authority has taken a hard line against the exchange and forced it to stop operations there last year.

The FCA has expressed concerns over Binance’s partnership with payments platform Paysafe, which acts as a fiat on/off-ramp. The company also launched Bifinity, a fiat-tocrypto payments provider earlier this month.

Binance is also negotiating a deal to take over Eqonex, a failing Singaporean finance company. Binance is the parent company to Digivault digital assets custody firm, which is one of few companies that is registered with British regulator.

Binance has invested $200 million to expand its business, and Forbes in the U.S. There was no mention of expansion in other sectors, and the moves seem to be restricted to the media industry at this time.

Outlook for the BNB Price

Binance’s native BNB token is trading down 4.3% on the day at $385, according to CoinGecko. The token has suffered 11% losses over the past month and has not been able to escape the wider crypto market slump. BNB is 43% lower than its May 10 high of $686.

There are currently 168,000,000 tokens in circulation. This gives it a market capital of $65 billion and ranks 4 on the coin cap charts.

 

Get latest news from African Startup ecosystem

Latest stories

You might also like...