Binance Is Looking to Expand Operations in Non-Crypto Sectors
As per recent developments, Binance is on a rampage in the mainstream business sectors with new acquisitions and integrations. The moves signify the exchange’s plans to branch out to businesses beyond the DeFi sector. According to financial experts, the ongoing policy pressures on Binance might have pushed it on this path to finding new businesses. Furthermore, these new ventures of the exchange have a predominant focus on acquiring media-based businesses in the hope of pushing crypto to the mainstream.
Binance is easily the largest crypto exchange in the world currently. Supporting Ethereum, Binance’s growth helped it build its own blockchain within a short span. The native BNB coin also posted phenomenal growth and reached its all-time high of $690 last May. Though the coin has lost around 50% of its value, this Binance coin price prediction still looks positive about its BNB’s rise to $2,000 in the next five years. This positive perspective owes much to the recent spree of the exchange to acquire new businesses from other sectors.
According to CEO Changpeng Zhao, the exchange will identify a few firms from every economic sector. These firms will be integrated with DeFi through a merger or acquisition to establish the exchange’s foothold in every part of the economy. Furthermore, this will be a huge opportunity for struggling businesses to get a solid stand in the crypto space. The initial move, as per this model, would target media companies in the hope of giving exposure to the economic model of Binance. Zhao believes that this move would motivate other firms to embrace crypto, the future of finance.
Currently, the larger portion of Binance’s revenue is accumulated from the transaction fees. This is expected to receive a blow as regulators around the world are seriously considering new policies about crypto-based transactions. Already, the Financial Conduct Authority of the United Kingdom has forced the exchange to cease operations. The platform was forced to do so following its connections with Paysafe, a payments platform. The issue was based on a lack of security measures and the platform’s design being accommodative of illicit activities like money laundering.
However, Binance has taken these claims seriously and is working towards enhancing security and verification infrastructures. Binance recently launched its payments app known as Bitfinity. It has also appointed a group of 70 employees in the UK to research and find solutions for these regulatory conflicts it has with the FCA. Moreover, the exchange is also developing a document-based KYC model and security software similar to the ones used in banks to enhance security on the platform. To expand its plans of going mainstream, Binance has recently acquired a Singapore-based finance firm Eqonex. This firm developed the digital assets platform DIgiVault, which is among the few that have UK regulatory approvals. So, it is evident that Binance is equipped well enough for resuming its business in the UK.