Binance makes changes to its Decentralized Finance (DeFi) vision, with plans to create headquarters in several countries. In an interview with Reuters, Binance CEO, Changpeng Zhao explained that “Historically, we claim that we don’t have headquarters. We are actually just in the process of establishing a few headquarters in different parts of the world.”
The Binance platform practice has come under direct criticism from several nations’ regulators, and this can be a move to build bonds with more countries. This way, the crypto exchange can break from the decentralized structure it previously adopted to a more centralized one. Binance recently registered three firms in Ireland. This led to a more direct question from Reuters- whether there are plans to set up a headquarters there, the Binance CEO replied with “Yes it does.”
The CEO further explained why this was a necessary step, stating that “When we first started we wanted to embrace the decentralized principles, no headquarters, work all around the world, no borders,” he went on. “It’s very clear now, to run a centralized exchange, you need a centralized, legal entity structure behind it.” This means the choice was between the exchange maintaining its decentralized structure and losing more users to regulations worldwide or restructuring its practices to welcome new users.
The Binance team understands that to expand its market, it needs to get as many regulators on board. While this may be considered a bad move by some, it surely is one to take the exchange to the next step.