4 ms·
Why isn’t Binance looking to become a bank? It’d make more sense imo for Binance to operate as a bank with both a crypto backbone and a tradfi backbone
by baby 4y ago
Why isn’t Binance looking to become a bank? It’d make more sense imo for Binance to operate as a bank with both a crypto backbone and a tradfi backbone
- mrjin 4y agoHell no. Becoming a bank means being heavily regulated, which is obviously not good for their biz.
- skissane 4y agoWhat if they bought a bank? If you have a bank as a subsidiary, obviously the subsidiary is heavily regulated-but is the same true for the non-bank parent company?
- blibble 4y agothe change in control will trigger all sorts of regulatory interventions
- paraselene_ 4y agoDidn't FTX do something similiar in the US?
- coffeebeqn 4y agoThey bought a tiny bank in WA and like 10x’d their deposits overnight. I think they were going to use it for some kind of money laundering or some other scheme
- deleted 4y ago[deleted]
- binkHN 4y agoBanks have rules; crypto has none.
- arlcode 4y agoCrypto has rules which Binance mostly ignore. Over time the rules of traditional finance and the rules of crypto will converge because they are really two sides of the same coin. Some outdated regulations will be removed and some new ones will introduced in the process. There is no conceivable future with a different outcome.
- threeseed 4y ago> There is no conceivable future with a different outcome. The conceivable future is the status quo. Crypto is used for speculation, illegal activity and a few limited legal use cases. But is otherwise ignored by the mainstream financial system.
- skohan 4y agoCrypto has no governing body so how can it have rules?
- jeandejean 4y agoIf this was the problem maybe, but how do we know it's going to be any better if they were a bank? Also, can Binance actually be a bank and have so shady accounting at the same time? Hardly... That might be why the swift partner ceases collaboration in the first place.
- solarkraft 4y agoIsn't binance a super shady construct without any real accountability? Becoming a bank would be ... quite a change to that.
- ruszki 4y agoHuge amount of scams goes through them, and effectively they help money laundering. So yes, that would be quite a change.
- powerapple 4y agobanks do, not for orders less than 100k though :) HSBC is fined every year for doing money laundering....
- ruszki 4y agoLuckily, banks are not that effective at all as Binance.