Is Binance's Trying to Fight Regulators by Investing in Traditional Companies?

When you look at BINANCE you are really looking at its founder and the person who maintains control over its CZ. Binance is still the largest exchange in the world giving it a sizeable influence on the market. CZ though is someone who is pretty hard to understand. The way he has gone about battling with regulators has been all over the place the last few years. What underlined the issues facing Binance and CZ had to do with the lack of a traditional headquarters anywhere in the world. 

Over the years CZ has gone from promising not to establish one to looking to establish one before the idea was abandoned yet again. This in part led to the US market being closed off for some time and Bianance.US being formed to enter the market again. While this type of back and forth would destroy a traditional company Binance is anything but and has really thrived in the chaos they have caused. 

I wrote a few weeks ago how Binance had invested $200 million into Forbes becoming one of the company's top shareholders. The reason given was that they were going to help further crypto adaptation by making NFTs of famous covers among other possible revenue streams they hoped to unlock. I can see why people would accept that reason at face value since it also helps diversify I strongly suspect something else leading to this investment. 

Many including myself were caught off-guard with the investment into Forbes as it is a widely known brand in the US. There in itself lies what the true reason may be. Binance is one gaining credibility from investors and regulators they typically are not exposed to as well as adding layers to the onion that is the company as a whole. Further evidence can be found with the announcement from Binance that it was going to continue to invest in traditional companies across a variety of industries. 

Binance it appears is attempting to become a sort of crypto/traditional company conglomerate. Conglomerates or companies that own pieces of several other companies across industries are much harder to discredit and tougher for the SEC or any governmental body to regulate in the way they may wish. Current conglomerates include the likes of Berkshire Hathaway or Softbank. Due to the size and complexity governments have an issue with bossing these companies around or exerting their influence on them. Since these companies tend to employ so many people it is against a government interest to interfere with them.

While others like FTX and CRYPTO.COM have taken other publicly driven ways for legitimacy Binance is spending its money investing in other accepted companies. This could end up working in the long run but they still have to manage to pull off these investments without getting flagged or stopped by regulation bodies. In the UK their financial regulator has already flagged a transaction that Binance has done to try and avoid government scrutiny. As much as CZ wants to continue the days where he does not answer to anyone those days are over now. 

With other crypto companies coming into line with more traditional companys' operations Binance will soon have to follow if it wishes to keep access to the lucrative Western finance world. Since the world is moving back to normal I would expect to see a headquarters location finally chosen and much more corporation with the different government agencies to occur. This would allow them to fend off from others like FTX, Crypto.com, or Coinbase. 

Please know I am not a financial advisor I am just someone who picked up on a trend and wanted to express it! Makes sure you always do your own research and never invest money you cannot afford to lose! If you enjoyed this article and would like to further support me below are a couple of referral links that if you used when signing up I would appreciate it! Also, follow me on Twitter @Cje95_

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