During the Bankless podcast, Changpeng Zhao responded to a question from a Twitter user under the pseudonym DegenSpartan.
He asked why Binance wouldn’t buy the bank and make it friendly to cryptocurrency firms in order to solve the problems of a large portion of the companies operating in the field.
“Indeed, we have been considering such a possibility.. But in reality it’s much more complicated.
If you buy one bank, it will only operate in one country, and you will have to deal with the banking regulators of that country.
This does not mean that you can buy a bank and do whatever you want.
If regulators tell banks not to work with cryptocurrencies, they can take away your bank’s license when dealing with digital assets.
That is, the purchase of the bank does not exempt you from the need to comply with the requirements of regulators.
And if they say you can’t work with cryptocurrencies, you just can’t do it,” Zhao said.
He noted that even if Binance bought the bank, that financial institution would need to cooperate with correspondent banks, and most of them in the U.S.
And they’ll also, at the request of regulators, refuse to carry out your international transactions if your bank operates with cryptocurrencies.
According to the CEO of Binance, the process of buying a bank itself is very complicated and costly.
And getting the regulators to approve the purchase of the bank is no less time-consuming than creating a bank from scratch.
In this case, the income from banking is not at all high in comparison to the money and effort expended.
That said, Changpeng Zhao stressed that Binance may invest in the banking industry in the future to have some leverage and “hope for a friendlier attitude toward cryptocurrencies.”
After the collapse of several U.S. banks that were friendly to cryptocurrencies, Changpeng Zhao said they began to pose real risks to steiblocoins backed by fiat currencies.