The head of the Binance crypto exchange, Changpeng Zhao (CZ), said that the company is not interested in buying any banking institutions due to regulatory complexity and capital requirements.
“The reality is much more complicated than the concept. You buy one bank, it only operates in one country, and you still have to deal with the regulators of that country. This does not mean that you can buy a bank and do whatever you want,” Zhao said.
He added that the authorities can easily revoke a bank’s license, especially when dealing with digital assets.
According to CZ, even if Binance buys one institution, it will still need “correspondent banks around the world, and most of them are in the US.” Organizations can restrict the use of cryptocurrencies by not providing access to international transactions, Zhao said.
The head of Binance noted the high costs of doing such a business and relatively low profitability. He also mentioned the difficulty in obtaining a purchase license.
“Many banks do not have sound business models. These are very risky ventures. They take the client’s money, lend it, try to make money. If they don’t return them, they declare themselves bankrupt. In many countries, the government will save them, but I don’t like doing this kind of business,” says Zhao.
As a result, CZ said that Binance will consider small minority investments in banks, which may affect the attitude of the financial system towards cryptocurrencies.
Recall that in May, Zhao saw signs of a bull market due to a report on digital assets on Chinese television. He noted that this event caused a real stir in the country, which will positively affect the industry.
Found a mistake in the text? Select it and press CTRL+ENTER
ForkLog Newsletters: Keep your finger on the pulse of the bitcoin industry!