• 17 July, 2024
News

Binance CEO Denies Rumors of Ending US Business Partnerships and Delisting Tokens

Binance Global CEO Changpeng “CZ” Zhao has denied reports that the company is considering cutting ties with its US business partners and delisting tokens from US-based projects, including Circle’s USD Coin (USDC). The reports surfaced after Binance Holdings came under increasing regulatory scrutiny from US authorities in recent weeks.

Bloomberg reported that Binance Holdings was evaluating whether to end relationships with intermediary firms such as banks and services firms, reassessing venture-capital investments in the US, and potentially delisting tokens such as USDC. However, Binance US remains unaffected by these reports.

CZ responded to the reports on Twitter, stating that “Blockchain has no borders,” and asked, “What even is a US-based token?” He added that Binance has pulled back on some potential investments or bids on bankrupt companies in the US for now, and will seek permission first. CZ’s statements seem to suggest that the reports may have been premature or exaggerated.

Binance Holdings does not serve customers in the United States, who are referred instead to the independent Binance.US. Both Binance and Binance.US have been the focus of recent investigations by US regulators. The US Securities and Exchange Commission is reportedly looking into ties between Binance.US and trading firms with direct connections to CZ.

Binance Holdings suspended bank transfers in US dollars on February 8 without explanation, hinting at potential banking problems. On February 13, the New York Department of Financial Services ordered Paxos Trust to stop minting the dollar-pegged Binance stablecoin BUSD after reports that the SEC was preparing a lawsuit over the coin. Binance was hit with a surge of withdrawals as a result.

Binance chief strategy officer Patrick Hillmann reportedly said on February 15 that the company expected US regulators to extract monetary penalties from the companies due to past compliance issues.

The recent reports come after US regulators increased scrutiny of cryptocurrency companies this year due to multiple industry meltdowns. Despite this, Binance continues to conduct a cost-benefit analysis and pivot its business as necessary to protect its global user base.

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