Cryptocurrency exchange Binance will not share profits with holders of its in-house token due to regulatory hurdles.
‘You Don’t Want That’
That was the decision from CEO Changpeng Zhao (known as CZ), who shed light on the issue during an informal social media Q&A session on March 4 hosted by UK-based trading platform eToro.
Asked whether the exchange, which has seen phenomenal success in its short lifespan, would recycle its profits back to investors in its Binance Coin (BNB) token, Zhao said the drawbacks outweighed any advantages.
“No, that would make (BNB) a security, and you don’t want that,” he responded to an eToro user on Twitter.
As with Binance more generally, BNB has seen its value soar as the cryptocurrency is used, among other things, to offer discounts to traders on fees.
Currently the eighth-largest cryptocurrency by market cap, BNB has so far avoided the issue of securities regulation in countries such as the US — where the topic has become a major talking point in the face of shifting regulatory…