Binance is trying to diversify its business interests by acquiring companies outside of the crypto realmaccording to a report in the Financial Times.
“We want to identify and invest in one or two targets in each economic sector and try to bring them to crypto,” Binance CEO Changpeng Zhao said., known lovingly for her 5.3 million Twitter followers as CZ.
Binancewhich already holds the title of the world’s largest cryptocurrency exchange, intends to attract companies from traditional markets in an attempt to increase the adoption of cryptocurrencies on a large scale and diversify its own business.
In the interview, Zhao went on to say that driving traditional businesses to embrace cryptocurrencies will put pressure on slow movers and increase overall market competition.
This announcement comes on the heels of Binance’s monumental $200 million investment in Forbes editorial in early February.cementing Binance as one of the two largest owners of the media company.
“This is the first step into a marketplace that has really high potential when it comes to adoption of Web 3.0 based tools”https://t.co/mDIRMHC4dT
—Binance (@binance) February 10, 2022
“This is the first step in a market that has really high potential when it comes to the adoption of Web 3.0-based tools”
These moves continue to demonstrate the growing real-world power of the cryptocurrency industry in general.which has seen Binance grow to an estimated valuation of roughly $300 billion and make Changpeng Zhao the 11th richest man in the world.
While crypto exchanges have plastered their logos on stadiums and stolen the show at the Super Bowl, Acquiring such a significant stake in a legacy media company like Forbes positions Binance as a serious player in acquisitions and investments.
Binance has dabbled in buying assets and companies outside of its immediate core business before.; acquired cryptocurrency data website CoinMarket in April 2020 and purchased a majority stake in card payment service giant Swipe in late December 2021.
In terms of income diversification, acquiring traditional businesses outside of digital assets appears to be a wise move as 90% of their revenue is currently earned from trading fees on their exchangeaccording to CZ.
Cointelegraph reached out to Binance for further comment, but it had not responded at the time of publication of this article.
News about Binance’s ambitions beyond crypto comes as the exchange continues to come under increasing scrutiny from regulators around the world.
On Monday, the UK’s Financial Conduct Authority has fired a shot through the arches over a strategic partnership between in-house Binance Bifinity card payment services and investment firm Eqonex. A $36 million convertible loan was provided to expand the companies’ products, including the Digivault, currently registered with the FCA.
As a result of the transaction, The FCA said that “individuals and entities that are part of the Binance Group may have become beneficial owners of Digivault for the purposes of the Money Laundering Regulations,” suggesting potential regulatory issues for Digivault..
We are aware of recent statements made by Eqonex Limited and the Binance Group confirming that an entity called Bifinity will advance a US$36 million convertible loan to EQONEX. https://t.co/EV7keSHRpa
— Financial Conduct Authority (@TheFCA) March 7, 2022
We are aware of recent statements made by Eqonex Limited and the Binance Group confirming that an entity called Bifinity will advance a $36 million convertible loan to EQONEX. https://t.co/EV7keSHRpa
Binance is also reportedly in talks to obtain a license to operate in Dubai, according to Bloomberg. This comes as the United Arab Emirates continues its push to become an oasis for digital assets in the Middle East.
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