CZ You can’t buy a bank and make it crypto-friendly

  • Binance’s CEO, Changpeng “CZ” Zhao, does not believe that purchasing a bank would solve the issue of banks deplatforming crypto companies.
  • He identifies regulatory challenges and the need for a network of banking partners as significant obstacles.
  • Binance Australia recently suspended AUD deposits because its banking provider discontinued the service.

CZ expressed skepticism that acquiring banks would resolve the growing problem of banking difficulties for crypto firms.

While the company has considered this in the past, the CEO does not view it as a viable solution and points out the complexities of policy and regulation.

Binance CEO on why they haven’t acquired a bank yet

CZ addressed the issue of crypto banking partners on the Bankless Podcast on Monday. This came shortly after the exchange announced that it was searching for a new banking partner for its subsidiary Binance Australia.

As CoinJournal reported, Binance Australia had to stop accepting AUD deposits after its banking partner terminated the service. This follows a tumultuous period for US banks and the failure of crypto-friendly banks Silvergate and Signature Bank.

Despite the decline in crypto-friendly banks, Binance cannot solve the problem by acquiring one and making it crypto-friendly, according to Zhao.

He explained that purchasing a bank would not prevent regulators from prohibiting crypto-related activities. Furthermore, even if Binance acquired a bank, it would still need to collaborate with banking partners worldwide. Given that many of these banks are located in the US, they could still halt their services because Binance offers crypto-related products and services.

Binance is not interested in purchasing a bank due to the high costs and the limited profitability of the business model.

However, the company plans to invest in multiple banks as part of a strategy to make them more crypto-friendly.

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