In the ever-evolving world of cryptocurrencies, the topic of crypto-friendly banking institutions has gained significant attention. Binance, one of the leading cryptocurrency exchanges, has been facing concerns about being debanked, particularly in light of recent banking collapses.

Buying a bank won’t solve crypto’s debanking issue: Binance CEO


This article explores Binance CEO Changpeng Zhao's (CZ) perspective on the idea of Binance buying a bank and the challenges associated with it. CZ's comments shed light on the regulatory complexities and capital requirements that make such a move unlikely for the exchange.

The Limitations of Buying a Bank

During an episode of the Bankless Podcast on May 29, CZ responded to a question about Binance purchasing a bank to make it crypto-friendly. While acknowledging that the idea had been considered, CZ highlighted the complexities involved in such a venture. Buying a bank comes with limitations, as regulatory compliance remains a critical factor. Each country has its own banking regulators, and acquiring a bank in one country doesn't grant unlimited freedom to operate as desired.

Regulatory Hurdles and Corresponding Banks

CZ emphasized that even if Binance acquired a bank, it would still need to establish relationships with corresponding banks worldwide. Since many corresponding banks are based in the United States, their regulations and restrictions could influence the operations of Binance's bank. If the corresponding banks object to dealing with crypto, they might restrict or halt international transactions, creating significant obstacles for Binance's global operations.

Cost and Profitability Considerations

CZ also discussed the financial aspects of owning a bank. He pointed out that banks are expensive to acquire and maintain, with low profit margins. The high capital requirements and regulatory approvals make purchasing a bank as onerous as establishing a new bank from scratch. Furthermore, CZ expressed his reservations about running businesses that carry substantial risks, where customer deposits are used for lending and potential bankruptcy becomes a possibility. While governments may intervene to save failing banks in some countries, CZ indicated a preference for avoiding such business models.

Influence through Minority Investments

Despite the challenges of buying a bank, CZ mentioned the possibility of Binance making small minority investments in banks. This strategic approach aims to influence existing banks to become more crypto-friendly, potentially fostering collaboration and innovation within the banking industry. While acquiring a bank may not be feasible, Binance's targeted investments can still contribute to shaping a more favorable landscape for cryptocurrencies in the banking sector.


Binance CEO CZ's remarks provide valuable insights into the complexities surrounding the idea of Binance buying a bank. The regulatory complexities, capital requirements, and limited influence on corresponding banks make such a move challenging. CZ's preference for avoiding risky business models and the high costs associated with owning a bank further reinforce his stance. Instead, Binance may explore minority investments in banks to encourage greater crypto-friendliness within the industry. As the crypto landscape continues to evolve, the relationship between cryptocurrencies and banking institutions will remain an important topic to watch.

Disclaimer: The material in this article is based on publicly accessible web sources and does not constitute an endorsement or particular recommendation. Before making any related choices, readers should undertake their own study and evaluation.



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