Binance US To Operate Independently, With Its Own Management, Admits CEO Changpeng Zhao
In the wake of Binance announcing the planned launch of Binance US, a crypto exchange which will exclusively serve its US-based clients, the exchange’s CEO has broken his silence. Speaking during the recent AMA, Changpeng Zhao, the exchange’s co-founder, and CEO expressed concerns regarding the whole move, saying that BAM Trading Services would be in charge.
Binance is arguably the largest crypto exchange in the world at the moment. But with the US tightening the noose on all crypto-related activities, the rollout of Binance US is expected to cut off the American cryptocurrency community from accessing Binance.com.
Will Be Managed By BAM Trading Services
According to Zhao, BAM Trading Services will take over and manage all functions and operations of Binance US. This follows BAM Trading Services’ partnership with the giant crypto exchange platform, which allowed them absolute control over the soon-to-be-launched exchange.
Binance will effectively cease having any legal control or operational role in the American exchange, although Zhao stated that they would still have “some influence.” He said that Binance would provide technology to the new exchange and subsequently enable it to operate in a similar fashion as its parent exchange.
Basically, the two will have similar wallet management services too, even though they will be under separate management teams. He clarified that he would have no role in Binance US, and the exchange will have no direct link with the bigger Binance.com platform.
The Launch Of Binance US
The platform also offered him the chance to speak about the day when Binance US would be launched. And although the exact date hasn’t been given yet, Changpeng Zhao said that he expects it to be up and running in three months.
He further stated that Binance was working hand-in-hand with BAM to beat the deadline. He, however, added that there’s “some uncertainty” in everything involved before the exchange’s launch since they
“don’t control everything.”
When asked about Secure Asset Fund for Users funds and if it would extend to its US-based customers, Zhao was adamant that it would not cover them. SAFU, introduced in 2018, is an emergency insurance fund set aside by the giant exchange.
Ideally, the funds are 10% of all trading fees earned and were created to cushion the platform’s users during extreme circumstances. The entire chunk is kept in safe, separate cold storage wallets, according to the CEO.
However, the decision against allowing those in the US access to SAFU funds, according to him, is because Binance US will create its own fund. He said that as soon as the exchange starts operating, it will start a similar fund.
Coins To Be Availed On The New Exchange
Changpeng Zhao also spoke about the cryptocurrencies the new exchange will support. He said that they hadn’t decided yet and would only divulge the whole list via the official US website immediately after they’ve reached an agreement.