Binance to cut ties with US partners amidst crypto crackdown
- Following the collapse of FTX, Binance Holdings is considering severing or curtailing its relationships with US businesses.
- The pressure from US regulators on cryptocurrency behemoth Binance Holdings Ltd.
- Zhao tweeted that he had backed away from US investments or bids on failing firms.
Binance Holdings recently thought about taking a step back due to a stablecoin issuer and a major bank. It has plans to cut ties with middlemen and delist tokens from US-based projects like Circle’s Dollar Coin. Various regulators have investigated it including the Justice Department, IRS, SEC, and CFT.
A small exchange called Binance Holding is not allowed to service crypto consumers in the US; it claims to be autonomous and has no intention of leaving. Binance CEO Changpeng Zhao hinted at a retreat earlier this week. Consumers would not suffer unwarranted harm due to alternative initiatives.
Zhao tweeted on Friday that Binance has temporarily “drawn back on certain possible investments or bids on failing firms in the US.” It is “wrong,” he claimed, that Binance will delist all coins with American origins.
Since FTX collapsed, regulators have cracked down on cryptocurrency exchanges, including Binance Holdings. In response to cease-and-desist orders, Nexo Inc. stated in December that it would phase out its goods and services on the US market.
In a sector actively controlled by the US, more exits are expected. Binance is doing a thorough cost-benefit analysis to safeguard its extensive user base and will adjust its operations as needed.
As a result of the US regulators’ attack on BUSD, which caused token redemptions from Monday to Thursday, Binance saw a net outflow of $1.9 billion in assets. Binance US asserted that it had never traded or lent client cash and denied shifting $400 million from a bank account to a trading company run by Zhao. Although Binance is in settlement talks with US regulators, it is unable to offer a date or possible compensation sums.
Posted Date: July 8, 2023
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