In its bid to further boost crypto adoption within the mainstream public, the CEO of the largest crypto exchange by trading volume, Binance, has revealed that the firm is currently considering investing in a few firms outside of its usual scope.
Binance to invest in non-crypto businesses
According to a Financial Times report, Binance is looking at investment opportunities within the traditional business sector so as to help “bring them into crypto.”
Changpeng Zhao (CZ) in his words stated that,
We wish to establish and put money into one or two targets in each financial sector and attempt to deliver them into crypto.
Binance was recently in the news for its acquisition of a historic $200 million stake in leading media publisher, Forbes. The investment earned the firm two seats amongst the publication’s board.
In reaction to the news, the crypto community hailed the investment as a sign of the growing maturity of the crypto space and also shows the level of seriousness to which crypto firms would go to bring their firms into limelight.
Binance is also reportedly one of the few firms looking to acquire Chelsea Football Club. The Roman Abrahamovic-owned club was recently put up for sale due to the increasing regulations being placed on Russian oligarchs. The exchange has, however, debunked the story.
Binance Regulatory Issues
With Binance looking to expand its operations beyond the crypto space, one would wonder how its regulatory issues could affect its investments in order businesses.
The leading financial watchdog in the United Kingdom, Financial Conduct Authority, released a statement on the partnership between a subsidiary of the crypto firm and a financial service company, EQONEX. The regulator expressed its concerns over the activities of the exchange within its region.
FCA continued that only Binance Markets Limited was allowed to operate in the UK and that no other Binance Group entity or subsidiary was licensed for any activity within the country.
While this is still unclear on how it would affect Binance business investments in the U.K., it is apparent that the authorities are wary of the exchange activities in their space.
However, the exchange’s CEO recently met with UK politicians in a bid to smoothen the relationship between the exchange and the government.
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Source: https://coingape.com/binance-invest-traditional-non-crypto-businesses/