Binance CEO Changpeng “CZ” Zhao has expressed his doubt that acquiring a banking institution would be a viable solution to the debanking issue that has been growing in the crypto space. Despite previously looking into this option, he believes that the complex regulatory environment and need for a network of banking providers would be too much of a hurdle for Binance to overcome.
This comes shortly after Binance Australia was forced to halt AUD deposits due to the decision of a banking provider to halt their services. During an episode of the Bankless Podcast on Monday, CZ commented on the issue of crypto banking partners and why Binance hasn’t taken steps to acquire a bank.
CZ highlighted the fact that even if Binance were to purchase a bank, there is no guarantee that the regulatory environment would become more favorable. Moreover, the exchange would still need to work with a number of other banking partners in order to provide services to customers, many of which may be reluctant to do so given Binance’s involvement in the crypto space.
The CEO also believes that the costs associated with purchasing a bank, as well as the fact that the business model of most banks is not very profitable, makes the prospect of acquiring a bank less appealing.
However, Binance does have plans to invest in several banks in order to make them more crypto-friendly. This is part of a strategy to help tackle the growing problem of debanking in the crypto space.