To reduce the legal hurdles, the BinanceUS team is exploring ways to reduce the relationship with Changpeng Zhao (CZ).
Changpeng Zhao (CZ) is co-founder of Binance exchange & its American independent subsidiary BinanceUS. Both of these two exchanges are popular in the crypto world. Recently the U.S. Commodities and Futures Trading Commission (CFTC) sued the Binance exchange & its co-founder CZ over unregistered derivatives trading for American citizens.
On 11 May 2023, The Information reported that the BinanceUS team is planning to reduce the CZ’s stake from the BinanceUS exchange.
According to the BinanceUS team, CZ is holding the majority of the stakes in the BinanceUS exchange and also he controls the crypto business under BinanceUS.
As CZ is under the US regulators’ charges and also recently the majority of the crypto exchanges faced legal action from the US regulatory bodies, so it will be better to reduce the relationship between BinanceUS & CZ.
In short, it will be easy for Binance to establish relationships with the US regulators amid unclear regulatory policies & huge challenges for the crypto businesses.
Reportedly Binance CEO CZ has been looking to sell his BinanceUS stake since the summer of last year and probably it will be for a small period. In short, after the overcome of all the regulatory challenges, CZ will get back again in the BinanceUS stakes ownership.
Recently X3 founder Andrew informed the crypto community that the United States Securities and Exchange Commission (SEC) may initiate charges against CZ over potential federal securities law violation & AML violations.
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.