Binance considers ending relations with its US partners amidst regulatory scrutiny

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Key Takeaways:

  • A Bloomberg report revealed, Binance might think about cutting ties with its US business partners.
  • The corporation is considering to retreat after heightened government scrutiny.
  • The delisting rumour has been openly denounced by CZ as “fake”

The crypto giant, Binance Holdings Ltd., is mulling over terminating its relations with its partners in the US as heat from regulators mounts in the wake of numerous high-profile crypto crackdowns there.

According to a source familiar with the situation, Bloomberg stated on February 17 that due to the current problems with its US business partners, Binance was reevaluating its commercial connections with those companies.

The Securities and Exchange Commission, Commodities Futures Trading Commission, Justice Department, and Internal Tax Service have all looked into Binance.

According to the article, the corporation is also reevaluating venture capital investments made in the United States, and the exchange would be open to delisting tokens issued by any American companies, including Circle’s USD stablecoin.

Zhao instantaneously refuted the claims that the exchange was thinking about delisting tokens linked to American-based projects on Twitter after the article was published on Friday, citing blockchain “has no borders.”

“For the time being, we withdrew from several potential offers or investments in failing US enterprises. first ask for permission, “Said Zhao in a subsequent tweet.

It was recently revealed that Binance transferred $400 million from a US partner to trading firm Merit Peak. Despite claims that Binance.US is entirely independent and serves as its “US partner,” the money transfers suggest that the global Binance exchange, which does not have a business permit in the US, was in charge of Binance US’s finances.

Binance also experienced a recent surge in withdrawals. The increase in withdrawals came after the Securities and Exchange Commission (SEC) instructed crypto firm Paxos to stop issuing Binnace stablecoin-BUSD.

Binance Holdings is definitely not the first business operating in digital assets to leave the market as a result of the legislative onslaught brought on by the fall of cryptocurrency exchange FTX

Binance is probably preparing for SEC sanctions after cryptocurrency exchange Kraken was ordered to discontinue its staking service in the U.S. and pay a $30 million fine due to U.S. regulators’ aggressive disciplinary procedures against crypto behemoths in recent weeks.

Since Signature Bank terminated its support earlier this month, Binance briefly stopped allowing its users to deposit and withdraw US dollars via bank accounts.

There is no denying that Binance and other market giants are becoming more and more marginalized as a result of recent steps by US regulators, including increased warnings to banks about cryptocurrency linkages.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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