Binance CEO dismisses buying bank as a solution to crypto debanking issue

Binance CEO Changpeng Zhao recently stated that despite the prevalent issue of crypto debanking, the crypto exchange is not interested in acquiring banking institutions. According to Zhao, purchasing a bank would not solve the debanking problem that many crypto, including Binance’s Australian branch, are facing. Zhao pointed out that there are several reasons why acquiring financial institutions is unlikely for Binance, including capital requirements and regulatory issues. Zhao also emphasized that acquiring a bank would not make one immune to regulator dictates on handling digital currencies. Additionally, owning a crypto-friendly bank would not address crypto debanking issues due to inherent ownership costs. Zhao also questioned the business models of the banking system and described the approach as extremely risky. Despite his aversion to traditional banks, Zhao suggested that Binance could affect the clime in other ways apart from facing the debanking problem. An increasing number of crypto establishments risk being debanked due to the ongoing US banking crisis, and some crypto companies, including Binance, are also losing support from payment service providers.

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