(FT) Binance CEO Changpeng Zhao says the crypto exchange seeks to invest in one or two targets in every economic sector in a bid to gain more bargaining power in the sector.
Zhao says the company will then push the targets into crypto, with the aim to raise competition and induce pressure on other incumbent groups to act in a similar manner.
The Binance CEO says that the exchange is not trying to create a “conglomerate.” He says the move seeks to create an infrastructure crucial in integrating digital assets into already running industries.
The crypto exchange already invested $200 million in Forbes. Zhao now says other industries, including e-commerce, gaming, and retail, are a target.
The move by Binance comes amid growing regulatory scrutiny of its digital assets trading unit. Regulators are concerned about risks to consumers trading on Binance, as well as the exchange’s procedures to curtail money laundering.
Binance has defended itself, with the latest comments by Zhao pointing that the exchange has hired dozens of enforcement and compliance staff. Zhao says the exchange has 70 employees focused on regulatory issues in the UK.
Binance earns about 90% of its revenue from trading fees, with projected investments in other entities also seen to diversify earnings especially due to fluctuations in cryptocurrencies.
BNBUSD is up +3.64%.
