Binance uses profit's quarter on expansion and acquisition

by in Blockchain News

Changpeng Zhao

Binance CEO Changpeng Zhao said in a recent interview with the South China Morning Post that the exchange reinvests approximately 25% of its profits each year on expansion and acquisitions.

Zhao’s commentary answered the question about several recent acquisitions - the popular data aggregator CoinMarketCap and Indian cryptocurrency exchange WazirX. “As a rule, every year we spend about a quarter of our profits on investment opportunities,” Zhao said.

In recent months, the exchange has been actively expanding its fiat gateways, adding the ability to purchase cryptocurrencies using credit cards in more than 50 jurisdictions. Zhao said Binance is “interested in exchanges that already work with banks and accept local fiat currency.”

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In November, Binance acquired WazirX to enable users to buy cryptocurrencies for Indian rupees. The purchase was very timely: a few months later, the Supreme Court of India declared the ban on cryptocurrencies of the country's Central Bank unconstitutional.

This month, Binance announced the acquisition of CoinMarketCap. Zhao declined to name the deal but confirmed that CoinMarketCap was Binance's biggest acquisition to date. Binance could pay $400 million for CoinMarketCap.