• Binance CEO Reveals Plans for Traditional Business Acquisition Spree

  • During its ongoing regulatory inspection, Binance intends to go on an acquisition binge of established enterprises “in every economic area.”

    The world’s largest bitcoin exchange is trying to acquire a few businesses that do not operate in the cryptocurrency market. In an interview, Binance CEO Changpeng Zhao remarked, “We want to find and invest in one or two targets in every economic sector and try to pull them into crypto.”

    This follows its $200 million purchase earlier this year in the US-based journal Forbes, which gave the exchange two board seats at the century-old business publication. Binance became one of Forbes’ top two largest owners as a result of the transaction.

    These initiatives demonstrate the exchange’s ambition to diversify their revenue streams while also researching crypto acceptance in traditional markets. Despite expanding into other businesses, Zhao stated that he does not intend to turn the exchange into a “conglomerate.” He sees their infiltration of traditional sectors as a chance to integrate blockchain technology into existing industries. “The strategy is to grow the crypto business,” Zhao stated.

    Binance has previously bought cryptocurrency-related businesses, though not always in the same industry. Binance purchased the currency tracking website CoinMarketCap in April 2020 and a significant interest in the card payment service Swipe in December 2021.

    Binance rules the exchange market.

    Binance currently rules the exchange landscape. The exchange processed an estimated $500 billion in spot crypto trading in the first quarter of 2022, about four times more than the runners-up, OKX and Coinbase.

    Binance handled approximately 1.5 trillion in trade volume during the peak of crypto spot trading. Keep in mind that this is exclusively for spot trading and does not include derivatives or other services. According to Bloomberg, the exchange generated at least $20 billion in income in 2021, with trading fees accounting for 90% of that total.

    Problems with compliance

    Recently, UK financial regulators expressed worry about the Binance, Bifinity, and EQONEX relationship, in which Bifinity provided EQONEX with a $36 million convertible loan. Since its creation, the exchange has been scrutinized by regulators for operating on the border of what is permitted, and it was recently warned about its “complex and high-risk financial products.”

    The Securities and Exchange Commission (SEC) in the United States has been investigating companies associated with Binance U.S. The regulator is worried about the manner in which it revealed its connections with the two trading firms.

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