Binance is Considering Multiple Jurisdictions for Headquarters: CEO
Binance, the world’s largest cryptocurrency exchange, is currently in discussions with several jurisdictions regarding the selection of its official headquarters, according to CEO Richard Teng.
During a fireside discussion at Paris Blockchain Week, Teng emphasized that the decision-making process is complex and involves a multitude of factors that must be carefully considered.
Key points:
- Binance is speaking to a few jurisdictions about establishing its headquarters, but has not yet made a final decision.
- The selection process involves assessing regulatory frameworks, taxation agreements, and the exchange’s suite of products and uses.
- Binance is focusing on increasing collaboration with regulators, with inconsistent and conflicting rules across regions being a key challenge.
Teng explained that corporate governance’s thinking is not as straightforward as simply naming a country, stating, “There’s a lot of considerations behind it.” So we are speaking to a few jurisdictions as of now; a few jurisdictions are under consideration.”
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He further elaborated on the complexity of the decision, citing the need to weigh and assess factors such as the value given Binance’s suite of products, the jurisdictions with regulations that can cater to those products and uses, and the impact of taxation agreements.
Former Binance CEO denied necessity of a headquarters
The question of Binance’s headquarters has been a long-running saga, with former CEO Changpeng Zhao either avoiding the question or arguing that the exchange did not require a physical headquarters.
However, Zhao later acknowledged that the exchange did, in fact, need one. When Teng took over CZ’s throne, he avoided the question, saying there was no need to share the information publicly.
His latest statements, however, indicate that the exchange is on the verge of choosing a location, with Teng saying, “As and when we are ready to announce, we will do so.”
During the fireside discussion, Teng heavily focused on Binance’s efforts to increase collaboration with regulators. He identified the exchange’s biggest challenge as inconsistent and conflicting rules across different regions, with each jurisdiction treating crypto differently.
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Teng stated, “So that is one of the key challenges that the crypto industry will continue to face until we see harmonization of standards globally. And that harmonization is going to take a long time.”
Teng also discussed the detention of Binance executive Tigran Gambaryan in Nigeria. He assured us that the exchange is actively cooperating with the Nigerian government and making efforts to secure Gambaryan’s return, but he refrained from discussing specifics.
