Altcoins, Bitcoin (BTC), Cryptocurrency, Cryptocurrency Exchange, News, Regulation

Binance Outlines Plans to Expand to Other Industries

Binance CEO Changpeng Zhao has stated his intentions to invest outside the crypto sector. CZ, who launched Binance in 2017, said that the exchange is diversifying into other sectors, such as gaming, retail, and eCommerce.

Over the years, Binance has become one of the world’s most trusted exchanges. This is shown in the number of processed orders, amounting to over $2 billion daily. Binance is also the most used crypto exchange in the world, displacing other popular ones like Coinbase.

Aside from being more secure than most exchanges, Binance credits its popularity to its strong listing policy, allowing users access to any digital asset they want. For instance, the exchange began supporting DOGE in mid-2019, almost two years before Coinbase added Dogecoin to its list of accepted cryptos. 

Binance has recorded massive success in the crypto world and is now keen to move into other sectors. But, what could have prompted the exchange to leave its comfort zone?

CEO Explains Reasons for Binance’s Move

In February, Binance invested $200 million in Forbes, sealing a strategic partnership. Speaking of the deal, Mike Federie revealed the deal would position Forbes as a leader in the crypto media field because it has got the experience and resources of Binance.

While the move is all about media to Forbes, CZ intends to onboard other industries into the digital asset world to make the industry bigger than it is. His approach is to build a blockchain network that exceeds the current by investing in targeted sectors. His strategy was never to build a business empire in various non-crypto industries. 

Binance Still Scrutinized by Regulators

Binance may have huge plans to expand into other sectors that aren’t crypto-related, but it still has regulators on its tail. In 2021, regulators across the globe launched a clampdown on the firm, raising concerns about its mode of operation and accusing it of functioning without a physical office. 

Regulators also accused the exchange of condoning money laundering and aiding illicit financial crimes. This led to some changes at Binance, as the firm limited its futures trading to x20, integrated KYC, and began the search for a regional office to comply with directives. 

Despite the sweeping changes, Binance is still under the microscope of some regulators. Earlier this week, the U.K. FCA raised concerns over the blockchain firm’s partnership with Bifinity, a payment network system. The FCA emphasized that Binance services were still restricted. 

Binance is still making progress. This week, they resumed GBP and EUR deposits and cashouts through SEPA and Faster Payments. The service was amongst others that shut down due to the crackdown.

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