• Binance is reportedly considering ending relationships with U.S. business partners due to tightening regulations by the SEC.
• Binance’s CEO Changpeng Zao (CZ) denied these allegations in a Twitter post.
• There are reports of $400 million being moved from a “secret” account paired with Binance’s subsidiary Binance.US, involving crypto-friendly bank Silvergate.
Binance Considering Delisting Tokens From US Partners
According to a Bloomberg report, crypto exchange Binance is considering ending relationships with U.S. business partners due to increased regulations from the Securities Exchange Commission (SEC). This comes after the SEC alleged that BUSD, a stablecoin pegged to the US dollar, was a security and sued crypto firm Paxos as well as reports of $400 million being moved from a “secret” account paired with Binance’s subsidiary Binance.US, involving crypto-friendly bank Silvergate.
Binance CEO Responds To The Allegations
Binance’s CEO Changpeng Zao (CZ) denied the allegations in a Twitter post saying they were false and that there was no evidence to back them up. However, this has not quelled investor concerns over the climate between exchanges and US regulators at present which has resulted in many questions and uncertainties among crypto investors about what will happen next in Q1 2021 despite recording a crypto bull run that is just beginning to take shape.
Binance Not Licensed By US Regulators
The regulators do not license Binance to operate in the U.S., but it has been conducting business in the U.S jurisdiction through its subdiary Binance.US potentially putting it at risk of further regulation or legal action if these rumors are true which could push them further away from operating within certain areas of the United States jurisdiction altogether including delisting tokens from any firms based there as part of its strategy moving forward..
Reports Of $400 Million Being Moved
There have been reports of $400 million being moved from a “secret” account paired with Binance’s subsidiary Binance.US, involving crypto-friendly bank Silvergate allegedly sent to trading firm Merit Peak owned by CZ incorporated in British Virgin Islands in 2019 where it has since invested over $1million into said subdiary . Despite this activity taking place outside of their US operations Kimberly Soward spokesperson for binance stressed that Merit Peak was neither trading nor providing services on their platform only their subsidiaries employees had access suggesting these funds may have been used for other purposes entirely unrelated to their activities within America .
Conclusion
In conclusion we can see that while binance’s CEO denies any wrong doing yet rumors still persist around potential delisting activities within certain jurisdictions due primarily to tightening regulations related specifically to securities exchanges surrounding stablecoins as well as looser surveillance on how money is moved across global borders especially when linked directly with off shore companies involved with trading operations associated wth binance itself and its subsidiaries .
