Financial Times reports several funds halt dealings with Binance

Several crypto funds ended cooperation with the Bitcoin exchange Binance after regulators in several countries raised concerns. The Financial Times reports.

The publication cites ARK36 and Tyr Capital as examples.

“Our concern is protecting clients from the unknown that is driving the current tightening of the screws by financial authorities in many countries.”, said Ed Hinde, co-founder of Tyr Capital.

Ulrik Likke saw in the recent events surrounding Binance a ‘red flag’.

The Financial Times noted that the latest development led one unnamed crypto fund to forgo starting operations on Binance.

The bitcoin exchange said it had not observed a reduction in institutional interest. Its representatives stressed that it is recording inflows of clients, including from the traditional financial sector.

Observers noted that Binance is seeking to strengthen AML compliance. In Hinde’s view, the platform has the resources to adapt to tougher regulatory requirements.

In June, Binance’s trading volume fell from $1.5 trillion to $668 billion. It accounted for 44.5% of the turnover of the leading spot exchanges.

Earlier, Binance CEO Changpeng Zhao did not rule out stepping up regulatory pressure. He also said that the company is making efforts to transition from startup to a financial services provider.

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