Binance has tried to diversify its income sources and push crypto usage further in the face of increased regulatory scrutiny by purchasing conventional enterprises in “every economic area.”
According to a Financial Times storey, Binance is aiming to broaden its business interests by purchasing firms that are not related to cryptocurrencies.
“We intend to find and invest in one or two targets in each economic area with the goal of bringing them into cryptocurrency,” said Binance CEO Changpeng Zhao, commonly known as CZ to his 5.3 million Twitter followers.
Binance, now the world’s biggest cryptocurrency exchange, is looking to acquire firms from conventional industries in order to boost broad-scale crypto adoption and diversify its own business.
Zhao continued in the interview by stating that encouraging established businesses to accept cryptocurrency would put pressure on the sluggish starters and boost overall market competitiveness.
This news comes on the heels of Binance’s historic $200 million investment in publisher Forbes in early February, establishing Binance as one of the company’s two biggest shareholders.
These efforts further show the cryptocurrency industry’s growing real-world influence, which has seen Binance reach an estimated worth of around $300 billion and elevated Changpeng Zhao to the world’s 11th richest man.
While cryptocurrency exchanges have already emblazoned their brands on stadiums and stolen the show at the Super Bowl, purchasing such a sizable interest in a legacy media organisation such as Forbes establishes Binance as a genuine acquirer and investor.
Binance has already bought assets and firms that are not directly related to its primary business, including the cryptocurrency analytics website CoinMarketCap in April 2020 and a controlling share in the card-payment services company Swipe in late December 2021.
In terms of income diversification, acquiring conventional firms outside of digital assets seems to be a prudent decision, given 90 percent of CZ’s revenue is now derived from trading fees on its exchange.
Cointelegraph reached out to Binance for comment but did not get a response by the time of publishing. The announcement concerning Binance’s expansion outside cryptocurrencies comes as the exchange continues to face increased scrutiny from authorities worldwide.
The United Kingdom’s Financial Conduct Authority sent a warning shot across the bows on Monday over a strategic relationship between Binance’s in-house card payment provider Bifinity and investment company Eqonex. A $36 million convertible loan was issued to enhance the firms’ goods, which include the presently registered Digivault with the Financial Conduct Authority.
The FCA said that as a consequence of the deal, “individuals and companies associated with the Binance Group may have become beneficial proprietors of Digivault for the purposes of the Money Laundering Regulations,” implying that Digivault may face regulatory scrutiny.
According to Bloomberg, Binance is also in negotiations to seek a licence to operate in Dubai. This comes as the UAE continues its quest to establish a digital asset oasis in the Middle East.
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