Binance.US and its founder Changpeng Zhao are seeking to reduce his stake in the platform amid stringent scrutiny from U.S. regulators. The Information reports this, citing informed sources The Information.
The management of the U.S. unit is concerned that preserving the current equity structure could complicate obtaining certain licenses.
The suit CFTC against Binance and Zhao on March 27, 2023 provided the basis for such concerns. The regulator accused the crypto exchange of “willful evasion of U.S. law” and non-compliance with rules.
In response Zhao stated that the Commission’s claims present “an incomplete picture of the facts,” and his company does not agree with the characterization of many points.
In the same month Binance encountered difficulties in its attempt to acquire Voyager Digital, the crypto broker undergoing bankruptcy proceedings. As a result, the firm withdrew its bid to buy it, citing a “hostile and uncertain regulatory climate in the United States.”
Earlier, NYDFS turned its attention to the issuer of Binance USD (BUSD), Paxos, and ordered the firm to cease issuing the stablecoin.
Patrick Hillmann, Binance.US’s chief strategy officer, lamented the pressure from U.S. regulators and expressed hope for improved relations with UK regulators.