Quick take:
- Binance is planning to scoop up businesses that operate in traditional markets to boost crypto adoption
- This follows Binance’s $200 million strategic investment in Forbes
- Earlier this month, CZ met with various UK policymakers in Westminister
- Binance has slowly been warming up to regulators across the globe
The popular crypto exchange of Binance is reportedly planning an ‘acquisition spree’ meant at buying businesses that operate in traditional markets.
In an interview with the Financial Times, Binance CEO, Changeng Zhao explained that their goal was ‘to identify and invest in one or two targets in every economic sector and try to bring them into crypto’.
CZ went on to elaborate that the main idea behind the plans was to push ‘a single company in an industry to embrace crypto [which] will amp up competition and pressure other incumbent groups to do the same.’
News of plans to acquire new businesses in traditional sectors comes exactly a month after Binance announced a $200 million strategic investment into Forbes. As part of the agreement, Binance will assume $200 million in subscription agreements in the $400 million private investment in public equity announced alongside plans by Forbes to go public.
The push by Binance into traditional businesses comes at a time when crypto exchanges across the globe are facing increasing regulatory scrutiny. Lately, crypto exchanges have been in the spotlight as officials in the European Union and the United States expressed concerns that crypto could be used by Russia and its elites to circumvent sanctions.
Binance has therefore pledged to comply with sanctions and all requests by law enforcement in both regions.
Earlier this week, Changpeng Zhao also met with a group of UK policymakers in Westminister. In attendance were two guests from 10 Downing Street and the Treasury, alongside MPs and Lords. During the meeting, CZ admitted that Binance might have jumped the gun when it started off but the exchange was now open to collaboration with regulators to push the industry forward.