according to According to a Bloomberg report, crypto exchange Binance is considering ending its relationship with its US business partner.
It is alleged that the largest cryptocurrency exchange in the market is considering the option of delisting tokens from companies based in the US jurisdiction due to the tightening of regulatory policies by the Securities Exchange Commission (SEC).
After the allegations by the SEC that BUSD, a stablecoin pegged to the US dollar, as a security and suing crypto company Paxos, the climate between the exchange and the US watchdog has escalated to concern and uncertainty.
In addition, the report states that Binance is currently evaluating investments in the United States. The regulator did not license Binance to operate in the US, but it has been doing business in the US jurisdiction through its Binance.US subdiary.
Binance CEO Immediately Responds to the Allegation
Binance CEO Changpeng Zao (CZ) denied the allegations on Twitter post. The CEO of the exchange responded to the comments on Twitter, saying:
4. False. https://t.co/qjqLrx3TGF
— CZ 🔶 Binance (@cz_binance) February 17, 2023
Binance’s CEO has been in a bit of controversy lately. According to a report from Reuters, the crypto exchange moved $400 million from a “secret” account paired with a subsidiary of the exchange Binance.US, involving crypto-friendly bank Silvergate.
Allegedly, the funds were sent to a trading company owned by CZ. The trading company is Merit Peak, incorporated in the British Virgin Islands in 2019. At that time, the company invested more than $ 1 million into the Binance subsidiary Binance.US.
Binance.US spokeswoman Kimberly Soward told Reuters that Merit Peak does not trade or provide services on the Binance.US platform, and only Binance subsidiaries in the US have access to the platform.
Amid intense scrutiny from US regulators, the crypto space has had a rough Q1; despite recording a crypto bull run that is just beginning to take shape.
This has caused a lot of questions and uncertainty among crypto investors. Regulators are pushing the industry on all fronts, including companies that can hold customer assets; prospects for exchange in the near future should be clarified in the US jurisdiction.
Bitcoin is currently trading at the $24,400 level after a retest of the $23,500 support line. It has gained 10.8% in the last seven days but still has land to cover a full recovery in the 24-hour time frame, with a current loss of 2.8% since yesterday.