Wednesday 25 May 2022
Home / Alibaba NFT marketplace / Binance unveils plans for world domination by buying up companies in every sector

Binance unveils plans for world domination by buying up companies in every sector

Binance is looking to diversify its business interests by acquiring companies outside the scope of cryptocurrency, according to a report from the Financial Times.

“We want to identify and invest in one or two targets in every economic sector and try to bring them into crypto,” said Binance CEO Changpeng Zhao, affectionately known to his 5.3 million Twitter followers as CZ

Already holding the title of the world’s largest crypto exchange, Binance is aiming to bring in companies from traditional markets in an attempt to further increase broad-scale crypto adoption and diversify its own business.

In the interview, Zhao went on to say that nudging traditional companies to embrace crypto will put pressure on the slow-movers and increase overall market competition.

This announcement comes not long after Binance’s monumental $200 million investment in publisher Forbes in early Feb, solidifying Binance as one of the two largest owners of the media company.

These moves continue to demonstrate the burgeoning real-world power of the cryptocurrency industry more broadly, which has seen Binance grow to an estimated valuation of approximately $300 billion and established Changpeng Zhao as the 11th wealthiest man in the world.

While crypto exchanges have previously 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 before in buying assets and companies that sit outside of its immediate core business, having acquired crypto data website CoinMarketCap in April 2020 and purchasing a majority stake in the card-payment services giant Swipe in late Dec. 2021.

In terms of diversifying revenue, scooping up traditional businesses outside of digital assets seems to be a wise move, 90% of which is currently sourced from trading fees on its exchange, according to CZ.

Cointelegraph contacted Binance for further comments, but it had not responded in the time for publication.

The news about Binance’s ambitions beyond cryptocurrency comes as the exchange continues to fall under increasing scrutiny from regulators around the world.

On Monday, the United Kingdom Financial Conduct Authority issued a shot across the bows about a strategic partnership between Binance's in-house card payment services Bifinity and investment firm Eqonex. A $36 million convertible loan was provided to expand the companies‘ products including the currently FCA-registered Digivault.

Related: Binance back in Malaysia via a strategic stake in regulated digital exchange

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 problems for Digivault.

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.

About Sean Patterson

Check Also

WEF 2022: PayPal looks to embrace all possible crypto and blockchain services

Global payment giant PayPal is doing its best to bring all possible blockchain and cryptocurrency integrations to its services, according to a senior executive at the firm. PayPal is working hard on supporting all possible digital services, including digital currencies and central bank digital currencies (CBDC), vice president Richard Nash said in an exclusive statement to Cointelegraph at the World Economic Forum on May 23. After rolling out its buy, hold and sell service for Bitcoin (BTC) across the United States 2020, PayPal continues to expand its digital currency-related offering, Nash noted: “Just walking slowly in the crypto shield with buys or holds in certain jurisdictions. [...] Looking to work with others to embrace everything we can, whether it’d be the coins that we have today in PayPal digital wallets, private digital currencies or CBDCs in the future.”Nash also hinted that he is a cryptocurrency owner, which perfectly aligns with his position at PayPal. When asked whethe..

Leave a Reply

Your email address will not be published. Required fields are marked *