In Paris, crypto exchange Binance wants to start its regional hub, and for that, it needs support from the financial sector of France. But France has put forward its condition that they would only provide support if the crypto trading Binance pays attention to its agreement against money laundering.
Binance has been under strict checks and inspections. Its Working has been considered unlicensed, so consumers are being stopped from utilizing it, and certain activities are being banned for using the largest exchange of the world known as Binance. All this while researchers and regulators have been analyzing Binance carefully to find out if there are some irregularities.
Regional hubs are to be started by Binance as regulators have put them in a difficult situation. The disapproval of their decentralized structure has been a setback for the company, and the company realizes the delicacy of the situation.
The headquarters of the whole world’s branches of the company would be set up in the heart of beautiful Paris. The first choice has always been Paris, stated at the beginning of November the Chief executive officer of the Binance known as Changpeng Zhao.
Not only is Paris a beautiful city, but it would be a perfect location to attract most customers. It would be a great location as not only the locals but also the tourists, and the visitors will be attracted.
In a speech at a conference, Francois Villeroy de Galhau, who is the Governor of the cENTRAL bank of France, stated that a guarantee for credibility and trust towards the company is the basis of the Dynamic, innovative market in Paris.
Being the controller and regulator of the ACPR financial sector, Villeroy stated in a conference held by them that the fraud challenges and anti-money laundering is the main issue. It will be focused on better by the Autorité des marchés financiers or financial markets authority AMF and the French Prudential Supervision and Resolution Authority ACPR. They are the regulators and Controllers.
About twelve to six months of the AMF service, AMF has not provided the approval for the company, and now they are waiting on the regulatory approval to be provided by them to the Binance company. This was reported at the start of November in the Les Echos newspaper of the French business by the Chief executive officer of the Binance.
As soon as the approval is provided, the company would start working on its key points and would plan out the next steps required for the flourishing of the company.
A total working group of about three thousand and five hundred people is there in Binance, and among them, about six hundred of the total workers are on good terms with the regulators.
Zhao mentioned that the process would take longer as there are huge factors involved. The company has been in prolonged talks about the funds, but it is still not clear to which funds were under discussion. A public listing was to be made by the United States to discuss the rise of the capital, which would be in addition to the wealth funds generated by various sovereign states. The plan of making the capital rise is still under discussion along with the global entity stated by the founder of the Binance named Zhao.
In the year 2020 beginning, around February, about one billion dollars was the initial fund, and up till last round, it got twenty-five billion dollars worth of value that it got from the Bahamian-based cryptocurrency exchange known as the FTX.
About 76 billion dollars worth of money was made at the beginning of this year 2021 through the exchange of cryptocurrency, which is the only publically listed known as Coinbase. Cryptocurrencies and Bitcoin, along with the other cryptocurrency values, have been rising on a large scale in these past few months, and it is a good time for Binance to jump in and start its new hub project.
Around billion dollars is the total rate of revenue generated, stated Zhao to the reporters. In the past, around two years ago, the total transaction amounts were around thirty billion dollars or ten billion dollars or something between these two extremes, but now it has reached up to a total of one hundred and seventy billion dollars worth of value on a daily basis. This is reported by the New Economy Forum of Bloomberg at the beginning of November stated the entrepreneur of crypto in an interview.
Dubai and Singapore were also great choices for the building of headquarters for Binance, and it had certainly considered these two in order to make its capital structure more powerful. With more attraction to its customers and a more developed surrounding, it would have been favored, but in the end, Binance decided to choose Paris over these two cities because of many reasons.
Paris proves to be way more beneficial than these two countries even though it seems like Singapore and Dubai would be a great spot to place headquarter, but it is not the case as with these countries the cost of living increases to providing more costs of living than the profits.
The trading in derivatives and the products that carry way more risks than any other has been pointed out by the regulators even though the company has been doing great on its own by providing crypto trading services to its users all around the world.
In many other states, a lot of offices have been created, and this was after the imposing of bans on the trading of crypto. In the year 2017, the Binance was moved from China, where it was originally created, to somewhere else. The location of Binance had never been publicized and has always been kept confidential, but now it has been publicized that the headquarters would be set up in Paris.