Bloomberg stated that Binance Holding Ltd is reevaluating its position in the United States and may sever relations with its partner businesses in the country due to rising regulatory pressure.
According to a report released on Friday, Binance US has no current plans to leave the nation.
Bloomberg reported on Friday that Binance Holding Ltd is reevaluating its position in the United States and may sever relations with its partner businesses in the country due to rising regulatory pressure from the SEC and other financial regulators.
Also, the company might terminate its relationships with U.S.-based banks and venture capital companies. Recently, the crypto giant blocked U.S. Dollar bank transactions after concerns with its local banking partner. After an investigation of the bank’s activities with the exchange, Signature Bank revealed steps to reduce its crypto exposure.
After the revelation, rumours spread that Binance was exploring delisting U.S.-based cryptocurrencies, such as Circle’s USDC. On Twitter, CEO Changpeng ‘CZ’ Zhao rejected such allegations.
The cryptocurrency exchange did adopt a similar measure by releasing an auto-conversion tool that exchanges USDC for Binance USD (BUSD), the stablecoin token produced by the cryptocurrency trust business Paxos. Significantly, Circle CEO Jeremy Allaire backed the decision, describing it as “a wonderful thing” and predicting that USDC usage will improve as a result.
This development follows a recent directive to Paxos to cease creating new BUSD coins. In response to a request from the New York Department of Financial Services, Paxos declared its intent to halt minting support for the Binance-branded stablecoin.
Paxos was also under review by the SEC; the agency issued a “Wells notice” to the company. In fact, the SEC argued that Paxos violated investor protection laws by offering unregistered securities. The crypto trust corporation denied the SEC’s charges and promised to forcefully contest the case.
It was then reported that USDC Issuer Circle alerted the NYDFS about blockchain data issues at the cryptocurrency exchange. Circle informed the New York authorities that Binance lacked enough crypto asset reserves to support issued tokens.
Previously, CZ’s firm had acknowledged a similar problem with some of their wallets and stated that the problem had been fixed.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.