• Binance is reportedly considering ending relationships with U.S. business partners due to a tightening in regulatory policies by the SEC.
• The exchange’s CEO, Changpeng Zao (CZ), denied the allegations in a Twitter post.
• There were also reports of Binance moving $400 million from a “secret” account paired with the exchange’s subsidiary Binance.US.
Binance Considers Ending Relationships With US Business Partners
The largest cryptocurrency exchange in the market, Binance, is allegedly weighing the option of delisting tokens from any firms based in the U.S. jurisdiction due to a tightening in regulatory policies by the Securities Exchange Commission (SEC). This comes after allegations by the SEC that BUSD, a stablecoin pegged to the US dollar, is a security and suing crypto firm Paxos.
Binance CEO Denies Allegations
Binance’s CEO Changpeng Zao (CZ) denied the allegations in a Twitter post saying that it was false and there was no such move being considered by them.
Reports Of Money Being Moved From Secret Account
Reuters reported that there were also reports of Binance moving $400 million from a “secret” account paired with its subsidiary Binance.US; involving crypto-friendly bank Silvergate. It was alleged that this money was sent to Merit Peak Trading Firm owned by CZ which had invested over $1 million into Binance’s subsidiary Binance.US last year when it got incorporated in British Virgin Islands 2019.. However, Kimberly Soward – spokesperson for Biance US – clarified that Merit Peak isn’t trading or providing services on their platform and only employees of their US subsidiary have access to it.
Regulatory Climate Affecting Crypto Market
The climate between exchanges and U.S regulator has escalated leading to concerns and uncertainty among investors as well as other players involved in crypto trading space this Q1 despite recording positive signs of crypto bull run just beginning to take shape amidst intense scrutiny from regulators regarding compliance with laws and regulations governing assets like Bitcoin etcetera..
Conclusion
BInance’s decision on whether or not they will end relationships with U
