CZ lists reasons why Binance decided not to buy a bank

CZ lists reasons why Binance decided not to buy a bank

Due to the increasing regulatory measures of the SEC and other local and global supervisory authorities, members of the crypto community are concerned about the future relationship of the industry to the banking sector.

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The unrest regarding future crypto regulation increased after the collapse of both the Signature Bank and the Silvergate Bank, both of which provided a large part of the infrastructure to bind the crypto world to the banking sector.

aggravated that the refusal of the SEC, to react to information requests from Coinbase and others, signals crypto platforms willing to cooperate that clear regulation agreements with good faith may be a way out.

Some companies-like Gemini, which recently announced the establishment of an EU headquarters in Ireland-decided to look to Europe instead.

Binance thinks beyond the box

Binance is not active in the United States. In order to offer US customers a service, Binance. Although the two platforms have the same name, Binance has a different organizational structure and does not report to CZ or other members of the C-Suite of the global company.

For several months, Binance has been looking for solutions for the difficult relationship between cryptocurrencies and the banking sector, especially after the latest disputes with Australian banks and Fiat providers.

dear Binanzaner,

We regret that we can now not enable Binance users to enable Binance users to make no Payid Audic deposits from now on. We learn from our external payment service provider that the bank ...

-Binance Australia (@binance_aus) 18. May 2023

In the managing director's view, the problems with which cryptocurrency platforms are faced could not be solved by simply buying a bank. Even if a bank was bought in the USA, this would not be a guarantee of official approval in other areas.

In addition, the costs associated with the purchase and operation of a bank could prove to be useless, since the banking authorities of the bank could simply ban to interact with cryptocurrencies.

"Banks are not cheap. Banks are very expensive for very low business income. [...] The required capital requirement is quite high and the official approval for the purchase of a bank is at least the establishment of a new bank, which is very tedious. If the banking supervisory authorities say:" You can see, with crrypto you cannot work. " Then you can withdraw your driver's license if you do this. The purchase of a bank does not prevent the supervisory authorities from telling them: "No, they are not allowed to touch crypto." Even then we need appropriate banks worldwide. ”

Nevertheless, CZ said that he and his company still think about making smaller investments in the banking sector, even if the purchase of a bank institute was completely off the table.

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