Binance is looking to diversify its business interests by acquiring companies outside the cryptocurrency space, according to a report from FinancialTimes.
“We want to identify and invest in one or two targets in each economic sector and try to bring them into crypto,” said Binance CEO Changpeng Zhao, affectionately known to his 5.3 million Twitter followers as name of ‘CZ‘.
Already holding the title of the largest crypto exchange in the world, Binance aims to attract businesses from traditional markets in a bid to further increase large-scale crypto adoption and diversify its own business.
In the interview, Zhao went on to say that pushing traditional businesses to embrace crypto will put pressure on the slower ones and increase overall competition in the market.
This announcement comes shortly after Binance’s monumental $200 million investment in the publisher. Forbesin early February, solidifying Binance as one of the two largest media company owners.
“This is the first step towards a market that has very high potential for the adoption of Web 3.0 based tools”https://t.co/mDIRMHC4dT
— Binance (@binance) February 10, 2022
These moves continue to demonstrate the budding real power of the broader cryptocurrency industry, which has seen Binance reach an estimated valuation of around $300 billion and established Changpeng Zhao as the 11th richest man in the world.
While crypto exchanges have plastered their logos on stadiums and stolen the show at the Super Bowl before, acquiring such a large stake in a legacy media company like Forbes positions Binance as a serious player in acquisitions and investments. .
Binance has already purchased assets and businesses outside of its immediate core business, having acquired crypto data website CoinMarketCap in April 2020, as well as buying a majority stake in the payment services giant by card. To glide end of December 2021.
In terms of revenue diversification, recovering traditional businesses outside of digital assets seems like a wise move, 90% of which currently comes from trading fees on its exchange, according to CZ.
Cointelegraph has reached out to Binance for further comment, but had not responded at press time.
News of Binance’s ambitions beyond cryptocurrency comes as the exchange continues to come under increasing scrutiny from regulators around the world.
Three days ago, the UK’s Financial Conduct Authority announced a strategic partnership between Binance’s in-house card payment services, Bifinity, and investment firm Eqonex, under which a $36 million convertible loan million has been awarded to expand the companies’ products, including the currently FCA-registered Digital safe.
Related: Binance Returns to Malaysia via Strategic Stake in Regulated Digital Exchange
Following the transaction, the FCA noted“individuals and entities that are part of the Binance group may have become the beneficial owners of Digivault for the purposes of money laundering regulations,” suggesting potential regulatory issues for Digivault.
We are aware of recent statements made by Eqonex Limited and Binance Group confirming that an entity called Bifinity will advance a US$36 million convertible loan to EQONEX. https://t.co/EV7keSHRpa
— Financial Conduct Authority (@TheFCA) March 7, 2022
Binance is also said to be in talks to obtain a license to operate in Dubai, according to Bloomberg. This comes as the UAE continues its push to become an “oasis” for digital assets in the Middle East.