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Funding for Binance.US Received “Significant” Interest: Changpeng Zhao


cryptoknowmics.com 20 August 2021 08:30, UTC
Reading time: ~2 m

Binance.US, the American division of the world’s largest cryptocurrency exchange Binance, is expecting to close a funding round with “reputable investors” very soon. The revelation was made by Binance CEO and founder Changpeng Zhao (CZ) in a statement to Bloomberg.

Binance.US to Close Funding Round Shortly

Amid inflating concerns about its legitimacy, Binance.US is said to have generated fresh funding from investors. According to Zhao, the ongoing efforts are expected to complete shortly with significant interest from reputable investors.

“There is significant interest from top-level investors, and they expect they will close around shortly,” Zhao told Bloomberg today.

To address regulatory concerns, the company’s American division will have “a diverse cap table with reputable investors and an independent board with proper governance, including the addition of new outside investors and independent members,” Zhao added.

The company’s latest funding round follows the high-profile departure of Binance.US CEO Brian Brooks, who left the company after just three months of joining.

According to a New York Times report, Brooks was courting several eminent investors during his tenure for an ambitious $100 million funding effort. But many of them, including venture capital firm GreatPoint Ventures and a senior SoftBank executive, decided to withdraw from negotiations due to anxieties regarding Zhao’s 90% ownership of Binance and the current investigation from US authorities.

The report also stressed that a lack of distinction between Binance.com and Binance.US prevented investors from pulling the trigger. 

Binance Caught in Regulatory Controversies Across the World

Binance is facing regulatory ire in several countries at the moment. In the United Kingdom, the Financial Conduct Authority (FCA) suspended the exchange’s activities in June. Subsequently, many prominent banks in the country unwinded their support for its activities. 

Similar events occurred in Ontario, where Binance ceased its operations after a regulatory crackdown in June. More recently, it eliminated support for Korean Won on its platform and halted its Korean language support services as South Korean authorities gear up to implement tighter restrictions on digital assets.

Despite the regulatory pressure, Binance is looking to pursue an initial public offering (IPO) in the US. The company’s biggest rival in the country is Coinbase, which is already listed on tech-focused stock exchange Nasdaq: 

“Binance.US also aims to IPO in the not too distant future,” Zhao emphasized to Bloomberg. “It’s just a matter of time.”

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