Binance CEO Changpeng Zhao, also known as CZ, has denied any plans to delist US-based tokens from the platform but acknowledges the possibility that the US Securities and Exchange Commission (SEC) may force the company’s hand. This comes amidst rising regulatory pressure on Binance and its US-based operations.
1/ Whilst the rumours of Binance delisting US based tokens was denied, the recent actions by US regulators could very well force not only all exchanges to delist the majority of tokens to US citizens, but also completely restrict the US from accessing DeFi / other activities.
— Seq (@CryptoSeq) February 17, 2023
Changpeng “CZ” Zhao, the CEO of Binance, has denied rumors that his exchange intends to sever ties with US-based projects.
CZ Says Binance Not Delisting ‘US-Based’ Tokens
On February 17th, Bloomberg reported that one of the most prominent names in the cryptocurrency industry was contemplating severing ties with American business partners, including the potential delisting of USD Coin (USDC), a stablecoin issued by Circle, a US-based financial services company.
The report stated that the company was considering this course of action due to mounting regulatory pressure on the exchange and its numerous domestic business partners.
Binance CEO Changpeng Zhao today claimed reports that the crypto exchange would think about delisting U.S. tokens were false. https://t.co/TiRumm4Ocv
— Decrypt (@decryptmedia) February 17, 2023
However, Binance CEO Changpeng Zhao has responded to recent reports and denied rumors that the company may sever ties with American cryptocurrency initiatives.
On February 17th, CZ responded to a report claiming that Binance was considering delisting all US-based cryptocurrencies, by writing “False” in a tweet. According to CZ, the report is untrue, and the rumors are FUD, which stands for fear, uncertainty, and doubt. He went on to say that this would not be the case since blockchain technology knows no borders.
SEC Might Force CZ’s Hand
While Binance does not provide services to US customers, it does have a separate entity, Binance US, which the global company claims is operated independently. Zhao acknowledged that Binance had recently backed out of several investment deals, including the acquisition of struggling businesses, but added that this was only temporary, stating “for now.”
In recent times, US regulators have begun scrutinizing Binance and Binance US. According to reports, the US Securities and Exchange Commission is investigating the relationship between Binance US and trading firms with close links to CZ.
On February 8th, Binance suspended bank transactions in US dollars without providing an explanation. However, the move suggested that there might be a banking problem. Additionally, following rumors that the SEC could file a lawsuit over the dollar-pegged Binance stablecoin BUSD, the New York Department of Financial Services instructed Paxos Trust to stop minting the coin on February 13th. Consequently, Binance experienced a surge in withdrawals.
Reports indicate that Binance’s Chief Strategy Officer, Patrick Hillmann, stated on February 15th that the company is anticipating financial penalties from US regulators due to past regulatory issues.
Regulatory watchdogs have previously led to the delisting several tokens from Binance and other platforms, despite CZ’s denial of any plans to delist US-based tokens. This suggests that while CZ may assert that Binance will not delist US-based tokens, the SEC could force the company to do so.
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