Breaking: U.S. Operation Stops at Binance CZ Denies USDC Delisting Rumor
Binance Holdings Ltd., a crypto-bomb, is considering cutting ties with American business partners as regulators increase pressure after several high-profile crackdowns in crypto.
Binance considers U.S. withdrawal?
According to the latest reports, the company that operates the largest cryptocurrency exchange worldwide is considering withdrawing after its relationships with a key bank partner and stablecoin issuer became strained. Investigations into Binance’s cryptocurrency exchange have been conducted by the Securities and Exchange Commission, the Commodities Futures Trading Commission and the Justice Department.
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According to the report, Binance Holdings is currently reevaluating its venture capital investments in America and is considering whether it should cut its relationships and business relationships with intermediaries such as banks and service organizations. According to the report, Binance Holdings is considering delisting tokens from any US projects. This would include Circle’s stablecoin USD Coin (USDC).
CZ however, has publicly decried the delisting rumor calling it “false”
4. False. https://t.co/qjqLrx3TGF
— CZ Binance (@cz_binance), February 17, 2023
Reacting to the news, USDC’s price remained at its $1 peg with a market capitalization of $41 Billion.
Growing Concerns for Binance
Binance Holdings has not been granted permission by the U.S. government to offer cryptocurrency exchange services to local customers. It instead relies on Binance.US which, although it is smaller, asserts that it is independent. Binance also stated that it doesn’t intend to relocate its operations from the United States at this time.
Changpeng Zhao, Binance Chief Executive Officer, was known as “CZ” and signaled a possible retreat earlier in the week. According to reports, he said:
We will be reviewing other projects in these jurisdictions due to the regulatory uncertainty in certain markets. This will ensure that our users are protected from any undue harm.
This follows Paxos Trust Co.’s announcement that it would cease issuing Binance-branded stablecoins BUSD. Binance Holdings will not be the first company to withdraw digital assets from the market due to the regulatory crackdown resulting from the failure of cryptocurrency exchange FTX. Nexo Inc. announced in December that it would withdraw all its products and services from US markets after receiving orders to cease and desist.
After Signature Bank pulled its support, Binance temporarily stopped withdrawals and deposits of US dollars from customers’ bank accounts. According to CoinGape’s Thursday report, Binance moved more $400 million from a bank account owned by the exchange in the first quarter 2021.
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