Binance CEO believes that buying a bank will not solve the problem with access to banking services

Binance’s CEO Changpeng Zhao said that the company will not buy a bank to solve problems with the access to banking services.

During the Bankless podcast, a popular Twitter user DegenSpartan asked Zhao why Binance would not buy a bank that would work with crypto firms and solve the issue of access to banking services. Earlier, the Australian branch of Binance had to suspend deposits in Australian dollars, as Westpac bank ceased cooperation with the crypto exchange.

Zhao admitted that the exchange’s team was considering this option, but decided to abandon it for a number of reasons. Firstly, any bank keeps in with the laws and regulations of the country in which it operates. If the regulator of this country prohibits banks from working with cryptocurrencies, then it can revoke the licence of a bank working with digital assets.

According to Zhao, even if the exchange buys a bank, this financial services organisation will still have to work with correspondent banks, most of which are registered in the United States. At the moment, a negative regulatory environment is developing in the United States for the work of crypto companies, so banks in this country can stop conducting cryptocurrency transactions at any time. Earlier, the US Commodity Futures Trading Commission filed a variety of charges against Binance.

Secondly, banks usually have an operating licenсe in only one country. Apart from that, buying a bank is not a good investment, since the costs and efforts for the acquisition will be much higher than the income from its activities. However, Zhao noted that Binance may pile into successful banks in the future.