Various difficulties are rocking the crypto industry. One of them is related to the lack of bank support. Indeed, the recent crisis has decimated the bulk of pro-crypto banks. One option to meet this challenge would be for a major firm like Binance to buy itself a bank. Not viable as a solution according to the boss of the company.
Not practical for Binance to afford a crypto-friendly bank
Some time ago, Changpeng Zhao, the CEO of Binance spoke about the overall situation of the crypto industry. This was shortly before the SEC launched its offensive against his company and Coinbase.
The boss had notably delivered his opinion in a podcast. Among other things, he spoke about the consequences of the crisis which shook the banking sector. One of them is to leave the crypto industry orphaned by the banks that supported it until then. Banks, such as Silvergate, Signature or Silicon Valley Bank, which have all sunk.
In this context, some considered that the option to bring more transactional facilities to the industry would be the acquisition of a bank. Asked about this prospect, Changpeng Zhao said: “The idea crossed my mind, but it wasn’t a practical solution”.
In addition, the official had expressed his concern about market dynamics, in a context of price volatility. A situation linked to the sinking of FTX which he believes has significantly harmed honest players in the sector.
Changpeng Zhao thinks that the collapse of FTX, which had a certain reputation at the time, had a perverse effect. That of unnecessarily launching the SEC after those who, like Binance, make the effort to remain relevant in the industry.
Binance has, in recent months, seen the SEC come down on it several times. Based on this observation, his analysis is not without relevance. Conclusions also confirmed by recent actions by the SEC, which now considers many cryptos as securities. This, by taking legal action against Binance.
“Although we take SEC claims seriously, they should not be the subject of an application measure, and even less in an emergency. We intend to vigorously defend our platform.”Binance said in a statement.
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