Binance, the world's largest cryptocurrency exchange, is nearing a decision on its formal headquarters, which has sparked discussion in the crypto market.

CEO Richard Teng has stated that the exchange is in talks with other jurisdictions. It wants to identify a location that fits its operational and regulatory needs.

What Challenges Does Binance Face? While Selecting a Headquarters

Teng addressed the complications of selecting a headquarters during Paris Blockchain Week. He emphasised that the decision is more than just choosing a country. It demands careful consideration of regulatory frameworks, tax ramifications, and strategic value for Binance's varied product portfolio.

"There are numerous considerations behind it. So we're currently engaging with a few jurisdictions, and a couple are being considered," Teng said.

Thus, the choice of Binance headquarters represents a significant departure from the earlier ambiguity around a physical basis.

Furthermore, Teng's statements at the occasion provided insight on the challenges of dealing with many regulatory regimes. He emphasised that the lack of comparable global standards remained a significant problem for Binance and the whole crypto business, necessitating a push for international regulatory coherence.

Read More: Crypto Regulation: What Are the Advantages and Disadvantages?

"So that is one of the most significant hurdles that the crypto business will confront until worldwide standardisation occurs. And that harmonisation will take a long time," Teng explained.

Previously, Binance navigated regulatory landscapes without committing to a specific headquarters, a position frequently emphasised by former CEO

Chengpeng Zhao. However, under Teng's leadership, the narrative shifts towards building a genuine business presence.

This change is part of a larger drive to comply with global regulatory standards and improve company governance.

Binance took a huge stride forward in March when it formed a new board of directors. This board mixes internal and external experience, with Gabriel Abed, former Barbados ambassador to the United Arab Emirates, as chairman.

This action follows a $4.3 billion settlement with US authorities over anti-money laundering and sanctions violations, which marked a watershed moment in Binance's legal and regulatory path.

Despite these governance improvements, the board's makeup has caused concern. Critics claim that the board is excessively weighted towards internal members, which may hinder the exchange's ability to provide independent monitoring and dilute the infusion of regulated financial compliance experience.

"Binance having a board composed primarily of company insiders tells me they are still resistant to outside control and oversight, and the lack of depth on the board of independent members with deep regulated financial risk or compliance experience is not ideal," Austin Campbell, a consultant who specialises in blockchain technology, said.