Binance.US growth prospects are constrained by ties between the business and Changpeng Zhao, the CEO of the global platform, and by the current regulatory environment, according to an internal presentation reviewed by sources The Block.
The company’s roadmap could be implemented if CZ sold his shares or placed them into a blind trust.
Other options include improving Zhao’s relations with regulators or Congress agreeing to some form of industry regulation.
Only then would the platform have the opportunity to pursue initiatives to launch new products, including equities and futures, as well as obtain licenses to trade derivatives.
The second roadmap scenario envisaged reduced investments. This would allow directing resources toward certain exchange updates, but would require willingness to take this step during the current bear market.
The third option involved freezing development until the firm’s situation improves significantly. This would enable reducing negative cash flows while maintaining normal business operations and licenses.
Against the backdrop of regulatory pressure, Binance.US’s monthly trading volume collapsed from $10.6 billion in January to $70 million in August, according to The Block.
On June 5 SECfiled a lawsuit against the exchange and Zhao.
On June 6 the regulator filed a motion to freeze the US subsidiary’s digital assets. The SEC accused the executives and Zhao of diverting customer funds into his own investment funds.
On June 9, users of the platform lost the ability to deposit dollars, prompting sales by those looking to withdraw funds in fiat.
On June 17 the SEC and Binance reached an agreement on client funds in the United States. The exchange resumed withdrawals of assets, though the company warned that the situation could change.
Earlier, it was reported that Brian Schroeder left Binance.US as CEO. At the same time, the US unit laid off about a third of its staff or around 100 people.