In the light of stricter regulatory measures in Asia, crypto operators are said to be focusing on consolidation procedures which will most likely build a stronger crypto presence in the region.
Senior executives at major crypto firms have sighted regulatory instances as a major lever by which these firms are bracing up their presence in the Asian region. They added that as the crypto industry failed to shake off perceptions relating to malpractice and regulatory compliance, there may be stricter regulatory oversight that threatens the presence of crypto operators which is why cooperation is necessary among these firms.
According to Changpeng Zhao, the CEO of Binance, which operate the biggest crypto exchange, during an interview with South China Morning Post (SCMP).
“In Asia, we are interested in exchanges that have existing banking relationships, which enable them to accept trading in local fiat currencies,” said Zhao Changpeng, chief executive of Binance.
He is also keen on e-commerce and payment services companies backed by blockchain technology.
CZ, as the popular CEO is known, also revealed that the top crypto exchange invests as much as a quarter of its annual revenue on developments and acquisitions. Binance completed a number of acquisitions within the last year and it’s most recent is a $400 million acquisition of popular crypto data site, CoinMarketCap (CMC).
According to the report, Binance accrued an annual profit of about $550 million in 2019, a figure which showed that compared with Binance’s CMC acquisition, the exchange reinvests in excess of nine figures into its business and other endeavors. CZ continued by confirming that Binance aims to stretch its wings further towards other areas within the crypto ecosystem rather than trading alone.
Binance, earlier today, also announced the launch of Bitcoin options on its futures trading platform. This new development will allow user trade on high leverage while employing advanced tools to leverage risk.
“We are excited to present the options contracts. Like the futures contracts, we will devote all our resources to BTC options initially, and introduce more digital assets when the first pair picks up,” said Aaron Gong, VP of Binance Futures. “The strategy proved to be very effective in driving the growth of Binance Futures and helping us enhance the futures product. I’m confident that it will also boost the growth of our options product.”