Did SEC Cause Binance to End Relations With its US Partners?

In accordance with a Bloomberg report, cryptocurrency exchange Binance is considering terminating partnerships with its business partners in the United States. Due to the Securities and Exchange (SEC) Commission’s tightening of regulatory standards, the market’s top cryptocurrency exchange is allegedly considering delisting tokens from any businesses situated in the United States.

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The Atmosphere Of Binance is Tense After the Paxos Incident

As the SEC filed a lawsuit against the cryptocurrency company Paxos and claimed that BUSD, a stablecoin tied to the US dollar, is a security, the relationship between exchanges and the US regulator has deteriorated to one of worry and uncertainty.

Furthermore, the source stated that Binance is reevaluating its assets in the United States. Binance does not have a license to operate in the United States, although it does do business there through its subsidiary Binance.US.

Did SEC Cause Binance to End Relations With its US Partners?

Changpeng  Zao Refuted the Claims

In a tweet, Binance CEO Changpeng Zao (CZ) refuted the charges with a Twitter post. Binance’s CEO has recently been involved in the scandal. According to Reuters, the crypto exchange transferred $400 million from a “secret” account linked to the exchange’s subsidiary Binance.US, with the help of crypto-friendly bank Silvergate.

According to reports, the cash was transferred to a trading business owned by CZ, Merit Peak. It is a trade business that was established in the British Virgin Islands in 2019. The company has previously contributed more than $1 million to the Binance affiliate Binance.US.

Did the Bull Run Toss into a Wall?

According to Kimberly Soward, a representative for Binance in the United States, Merit Peak is not trading or offering services on the Binance.US platform, and only employees of Binance’s subsidiary in the United States have access to it.

Despite a crypto bull run that is only getting started, the crypto market has had a tough Q1 amidst heightened scrutiny from US regulators. This raises numerous concerns and doubts among cryptocurrency investors. The regulator is pressing the sector on many fronts, including which organizations can have custody of their clients’ money; the future for exchanges in the short term in the US jurisdiction has to be clear.

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Jose Sequeira

Strong media and communication professional with a MA in Broadcast Journalism from City University and a BA in Media Studies with Spanish from the University of Sussex. Started my career as a journalist I have been working for almost 10 years in different regional and national news channels along with assorted media and still now I am working for different digital content creators. I love staying up to date with the latest developments in the crypto world, and I'm always on the lookout for new and innovative blockchain projects. I believe that crypto has the potential to revolutionize the way we think about finance and money, and I'm committed to bringing the most important news and analysis to my readers. With my extensive knowledge of the industry and my ability to spot emerging trends, I'm confident in my ability to keep my readers informed and engaged in this fast-paced and rapidly changing space.

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