Binance US and its founder Changpeng Zhao(CZ) is reportedly looking for ways to reduce its stake in the firm after harsh reviews from US federal regulators last year.
According to a May 11 report by The Information citing people familiar with the matter, Binance US It is stated that CZ, which is the majority owner of , has been trying to reduce its stake in the US-based stock market since last summer. Binance and Changpeng Zhao have come under intense scrutiny from United States federal regulators over the past year.
SEC Sanctions Kidnap Major Exchanges Overseas
In march, Commodity Futures Trading Commission sued Binance and Changpeng Zhao for operating a company it claims is an illegal exchange with a bogus compliance program. The firm has been accused of deliberately evading U.S. law while employing a calculated regulatory arbitrage strategy for its business interests.
In response to the lawsuit, Binance claimed regulatory compliance, saying: “We have implemented a robust three line of defense approach to risk and compliance.” Since then, Binance US bosses have reportedly sought ways to reduce CZ’s stake and influence on the company, and were concerned that they would not be able to obtain certain regulatory licenses as long as CZ remained the majority owner.
SEC in February, Binance’s stablecoin BUSDwho brought out Paxos He sued . Meanwhile, the regulator, the bankrupt crypto loan firm Voyager DigitalBlocked approval of Binance US offer for assets owned by .
It seems that the Securities and Exchange Commission is specifically targeting American-based crypto exchanges to subject them to the same stringent regulations as banks and brokerage firms. In conclusion Coinbase, Gemini, RippleAnd Galaxy DigitalMajor players such as the SEC began to flee the United States, being among those considering moving overseas following the recent sanctions by the SEC.
KrakenAnd BittrexAs the battle against crypto continues, other major exchanges such as United States of Americahas ceased its services in Turkey in whole or in part.
