• Binance is reportedly considering cutting ties with U.S.-based business partners due to stricter regulations from the SEC.
• Binance CEO Changpeng Zao (CZ) denied these allegations in a Twitter post.
• Recently, there have been reports of Binance moving $400 million from a “secret” account to a trading firm owned by CZ.
Binance Weighs Ending Ties with US Business Partners
According to a Bloomberg report, crypto exchange Binance is considering ending relationships with U.S. business partners due to increased regulatory scrutiny by the Securities Exchange Commission (SEC). After being accused that its stablecoin BUSD is a security and sued by the SEC, the climate between exchanges and the U.S. watchdog has become uncertain and concerning for many investors.
Binance CEO Denies Allegations
Binance’s CEO Changpeng Zao (CZ) denied the allegations in a Twitter post saying it was false information. It should also be noted that although not licensed to operate in the U.S., Binance has been conducting business through its subdiary Binance US which only employees of this branch have access to its platform according to spokesperson Kimberly Soward .
$400 Million Transfer To Trading Firm Owned By CZ
Recently there were reports of Binance transferring $400 million from one of its accounts paired with subsidiary Binance US to Merit Peak -a trading firm owned by CZ that was incorporated in 2019- investing more than $1 million into Binance’s US branch at the same time .
Crypto Bull Run Taking Shape Despite Regulatory Uncertainty
Amidst all this regulatory uncertainty, Q1 has had an intense scrutiny on cryptocurrencies but it hasn’t stopped Bitcoin’s bull run from taking shape as prices continue their climb up again .
The situation between exchanges and regulators remains uncertain as crypto projects continue their way towards mainstream adoption and acceptance despite legal restrictions in certain jurisdictions .