If Binance’s mounting regulatory concerns are not enough, the company is planning to do something that might attract regulatory scrutiny again.
Recently, the world’s largest crypto exchange by volume has announced its plan to raise $100 million, which it aims to accomplish next month.
Its initial attempts to raise this huge capital had actually failed. And according to rumors, this is one of the major reasons why former Binance.US Chief Executive Officer Brian Brooks quit.
Brooks has only served three months as Binance.US’s head.
There were lots of speculations as to why the crypto exchange giant failed to raise $100 million from venture capitalists, but what is clear is that Binance.US isn’t backing down from its original plan.
$100 million target
According to a number of sources who wish to remain anonymous, Binance.US, even with the problems it had faced from its capital raising, isn’t adjusting its original target.
One of the major problems it is currently facing is that most investors are reluctant to lend the crypto exchange with funds because of regulatory issues.
According to major news outlets, Binance.US is already in the early stages of its IPO venture. In fact, Brooks was already working on this before he stepped down, courting major companies such as SoftBank and GreatPoint Ventures. Unfortunately, according to reports, both companies have refused to invest in Binance.US.
Zhao’s 90% ownership
Right from the very start, Binance.US has made it clear that it was established as a separate entity to Binance, which is owned by Changpeng “CZ” Zhao.
But even with this claim, the fact that Binance.US is 90% owned by Zhao worries a lot of investors because of the regulatory scrutiny that the crypto exchange might attract.
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