Binance Holdings is considering cutting ties with US-based business partners amid mounting pressure from local regulators. Bloomberg reports, citing a source.
According to him, the company’s CEO Changpeng Zhao is exploring options to disengage from working “with American banks and service firms”.
According to the article, Binance.US, operating independently of the global platform, does not plan to leave the United States. However, the unit is allegedly reviewing venture investments and the possibility of delisting tokens of projects based in the country.
Zhao denied the claim and urged readers to “ignore fake news”.
4. False. https://t.co/qjqLrx3TGF
— CZ 🔶 Binance (@cz_binance) February 17, 2023
The head of the platform also added that at the moment Binance “has pulled back on some potential investments or bids on bankrupt companies in the US.”
We pulled back on some potential investments, or bids on bankrupt companies in the US for now. Seek permission first. https://t.co/js0OR7gy68
— CZ 🔶 Binance (@cz_binance) February 17, 2023
The New York State Department of Financial Services initiated an investigation into Paxos, which issues Pax Dollar (USDP) and Binance USD (BUSD) stablecoins.
The regulator ordered Paxos to stop issuing the latter. The infrastructure company said it would discontinue cooperation with Zhao’s exchange and, from February 21, halt the issuance of BUSD.
Media reports also emerged that the SEC intends to file a lawsuit against Paxos. According to the Commission, the stablecoin is an unregistered security.
Against this backdrop, Zhao said that the intensifying regulatory oversight in the U.S. underscores the growing need for “stablecoins” not tied to the dollar. In his view, crypto entrepreneurs should consider relocating to a country with a more favourable regulatory environment.
In an interview with WSJ, Binance’s Chief Strategy Officer Patrick Hillmann said that Binance expects to pay fines to settle claims by U.S. authorities.
In late 2022, Reuters, citing unnamed sources, reported on the U.S. Department of Justice investigation into possible AML violations by the exchange.