As U.S. agencies and regulators investigate Binance Holdings, the world’s most significant crypto exchange by trading volume, they are seriously contemplating ending their ties with American business partners – so reports Bloomberg citing a reliable source regarding this issue.
Binance to Reconsider Partnerships with U.S. Banks
To disassociate himself from U.S. banks and service firms, Changpeng Zhao – the founder & CEO of Binance– is now rethinking his current venture capital investments in America while also potentially delisting tokens issued by American projects such as Circle’s USDC stablecoin, according to a source speaking with Bloomberg recently.
On Friday, Zhao strongly denied the suggestion that Huobi intended to delist tokens attached to U.S.-based projects in a tweet pointing out how “blockchain has no borders.” Additionally, he stated via Twitter that they were taking care not to pursue any potential investments or bids on bankrupt companies based within the U.S. without first obtaining permission from relevant authorities.
US Officials Have Been Taking Steps Against Binance for a Time
Last week, the New York Department of Financial Services took decisive action against the Binance-branded stablecoin BUSD issued by Paxos. Additionally, the crypto exchange has been investigated by multiple U.S.-based organizations, including but not limited to: the SEC, Commodity Futures Trading Commission, Justice Department, and Internal Revenue Service, for its associations with Silvergate Bank’s suspicious transactions.
In recent weeks, regulators in the United States have implemented strict enforcement actions against crypto players. Consequently, Binance expects to receive fines from the SEC after Kraken was required to close its staking service within the US and pay a hefty $30 million penalty.
BinanceUS Says It Will Continue Operations
Binance.US is determined to stay in the U.S. and guarantee its customers that it works separately from Binance and will continue doing so in the future. Nevertheless, they have decided to pause USD bank transfers by users this month as a precautionary safety measure. “Just like all other blockchain companies,” an email sent out by a Binance representative declared when talking with CoinDesk, “we are carefully weighing cost-benefit ratios, and if needed, we will adjust our business plan for the security of our global clients.”
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