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According to CEO and Founder Changpeng Zhao, popular cryptocurrency exchange Binance’s U.S. subsidiary could have an initial public offering by 2024. In a recent interview, the exec noted,
“Binance.US is just going to do what Coinbase did.”
Here, it’s worth noting that Coinbase’s IPO was followed by lawsuits from Donald Ramsey and other investors. In fact, many of the latter have alleged the exchange made “materially misleading” statements during its IPO. As Coinbase continues to fight this charge, Binance may want to make sure that it covers its bases from regulatory and investors’ end.
The exchange has already been seeing massive changes as it tries to comply with regulations in various countries. Meanwhile, regulations in the United States could be tricky to maneuver given the lack of clarity about crypto.
This isn’t the first time CZ has touched upon Binance’s IPO dreams. As reported, the CEO had previously claimed that an IPO will happen as soon as the requisite corporate structures, such as having a headquarters and being a legal entity, are in place.
CZ also disclosed in the aforementioned interview that Binance US will close a big private fundraising round in the next two months. This will accidentally weaken Zhao’s grip on the board.
However, Binance’s US arm has recently encountered a number of difficulties. Brian Brooks, the newly appointed CEO, resigned last month, claiming “differences about strategic direction.” As a result, it will be interesting to see how Binance, in collaboration with the SEC, presents its IPO dreams to the public in the United States.
It is noteworthy that on the back of Coinbase’s IPO, many crypto-businesses are looking for a public listing now. This includes giants of the industry like Circle, Kraken, Binance, Blockchain.com, among others.