If cryptocurrency regulations tighten, Binance may cut ties with U.S. partners and delist US-based coins.
Binance Holdings is reviewing its US venture capital investments and considering cutting links with intermediaries including banks and services companies.
May sever connections with U.S. partners and delist tokens from US-based projects.
The world's largest cryptocurrency exchange, Binance Holdings Ltd., is thinking of terminating its relations with its partners in the US as pressure from regulators mounts in the wake of numerous high-profile crypto crackdowns there.
The company that runs the biggest cryptocurrency exchange in the world is reportedly thinking about withdrawing after having issues with a significant banking partner and a stablecoin issuer due to heightened government scrutiny. The Securities and Exchange Commission (SEC), the Commodities Futures Trading Commission, the Justice Department, and the Internal Revenue Agency have all looked into the cryptocurrency exchange Binance.
According to the report, Binance Holdings is reassessing its venture capital investments in the US and debating whether or not it should sever its ties with intermediary businesses including banks and services companies. The stablecoin USD Coin from Circle and any other US-based projects might be delisted, according to the article (USDC). CZ, however, has stepped out in the open to call the delisting story "fake" and publicly refute it.
In response to the news, the price of USDC, which has a market capitalization of $41 billion right now, remained unchanged at its $1 peg.
Binance Holdings is not authorised by the U.S. government to offer cryptocurrency exchange services to domestic clients. Instead, it makes use of Binance.US, a different exchange that is considerably smaller yet insists on being independent. Furthermore, Binance asserts that as of right now, it has no plans to move its activities outside of the United States.
Changpeng Zhao, the alias "CZ" for Binance Chief Executive Officer, hinted at a possible retreat earlier this week. According to a comment from him, we will be considering other initiatives in those jurisdictions given the current regulatory uncertainty in those markets to make sure our consumers are protected from any unwarranted harm.
This follows the announcement by Paxos Trust Co. that it would stop releasing BUSD stablecoin with the Binance brand. Binance Holdings won't be the first business dealing in digital assets to leave the market as a result of the regulatory crackdown brought on by the fall of cryptocurrency exchange FTX. Nexo Inc. declared its intention to remove all of its goods and services from the US market in December after receiving cease-and-desist letters from a number of states.
Since Signature Bank terminated its support earlier this month, Binance briefly stopped allowing its users to deposit and withdraw US dollars via bank accounts. Meanwhile, a revelation that was carried by CoinGabbar on Thursday claims that during the first quarter of 2021, Binance transferred more than $400 million out of an exchange-owned bank account.
