Binance’s frantic quest for decentralization may well have found its base. In recent days, the platform’s official communication, through its CEO and creator Changpeng Zhao, shows the group’s desire to have a centralized body. A body that would meet the demands of regulators around the world.
The threat from regulators around the world
In recent months, the supervisory and regulatory bodies of many countries around the world have plunged into the same breach. The one which consisted in recognizing the activity of the Binance platform as illegal in their territory. The entity does not have the necessary authorizations to exercise. And for good reason, it is the absence of a head office which often prevented it from exercising.
The last few months have therefore been turbulent at Binance. With in particular threats from English, Italian, Malaysian, Dutch and Japanese regulators, to name but a few. Threats that had not remained without consequences as in the United Kingdom or certain banks had blocked payments to the platform. Trading had also been suspended in certain geographies. Lawsuits could be launched in some countries against the platform.
It was in this tense climate that Binance likely wanted to step up to regulators around the world. By having a head office capable of centralizing certain requests. Through this, the platform led by Changpeng Zhao intends to extinguish the numerous fires.
For what modalities?
This reversal of strategy on the part of the CEO of Binance has not yet been accompanied by concrete statements. No city has filtered for the establishment of the siege. No more than the date of taking office of this new head office.
In recent statements, Changpeng Zhao also highlighted the group’s desire to recruit senior officials capable of discussing and evading regulatory issues.
Anyway, these recent announcements have had very little effect on the price of the BNB token. On the day of yesterday, the asset lost nearly 1.90% to be displayed after 6 pm, at the gates of 430 dollars. The publication of concrete elements (date of implementation, city chosen) could have a greater impact on the market. For that to happen, investors around the world will have to consider that this step forward is likely to ease tensions with regulators around the world.