- The Binance CEO tweeted that the reports were false
- However, he acknowledged the exchange had “pulled back” on some deals.
- Binance has endured a lot of FUD over the past several months, particularly after the collapse of FTX.
Binance CEO Changpeng ‘CZ’ Zhao has denied reports that his exchange is looking to sever ties with US-based projects.
His comments followed an earlier report that cited familiar sources as saying Binance was planning to delist all US-based tokens. One of those to be delisted ostensibly being USD Coin (USDC), a stablecoin issued by US-based financial services firm Circle.
But in a tweeted response to one of the reports, Zhao termed the report as “false.” He went on to suggest that this wouldn’t be the case given “blockchain has no borders.”
4. False. https://t.co/qjqLrx3TGF
— CZ ???? Binance (@cz_binance) February 17, 2023
According to a Bloomberg report published on Friday, sources claimed Binance was looking to end relationships with its partners in the US, including banks. The crypto giant was also reassessing its venture investments in the country, the report added.
While acknowledging that Binance had indeed pulled back from some investment deals and takeover of bankrupt companies, Zhao noted this was just ‘for now.”
We pulled back on some potential investments, or bids on bankrupt companies in the US for now. Seek permission first. https://t.co/js0OR7gy68
— CZ ???? Binance (@cz_binance) February 17, 2023
Zhao also linked to a previous tweet in which he says it is better to focus on education, compliance and product & service, and “ignore FUD, fake news, attacks, etc.” It’s notable that Binance has been subject to a lot of FUD over the past few months, with negative coverage heightening following the collapse of crypto exchange FTX.
Today’s reports on Binance comes just days after the US Securities and Exchange Commission (SEC) said it was suing Paxos, the US-based issuer of the Binance USD (BUSD) stablecoin. The regulator has labelled BUSD as an “unregistered security.”
That on top of the New York Department of Financial Services ordering Paxos to stop minting the stablecoin, a scenario that saw the company end its relationship with Binance.
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The exchange cryptocurrencytrade giant Binance has denied reports that it plans to delist United States-based tokens, countering an earlier report by Cointelegraph which claimed the powerful crypto platform is expecting to stop US-based tokens from trading on its platform.
Earlier this week, a report from Cointelegraph alleged that Binance was planning to delist tokens based in the US for legal compliance with the US regulators. However, Binance has now denied this report, stating that “more clarification of business strategy and licenses for US investors is something that [it] is working diligently on.”
The denial by Binance also came despite some claims from US regulators that Binance could be violating US securities laws with its current trading practices. According to the US Securities and Exchange Commission (SEC), some tokens that are listed on Binance could be considered securities, which must be registered or exempt from registration or comply with certain laws.
In response to Cointelegraph’s report, Binance has clarified that it will not be delisting tokens based in the US at the moment. It has also stated that it has no plans to change its current position regarding US tokens and any listing or delisting activity will happen in line with regulators’ laws and guidelines.
Given the increasing regulatory scrutiny of the crypto industry in the US, it is not surprising that Binance has taken a cautious stance and is seeking more clarity from US regulators about the legality of US tokens prior to taking any drastic action.
Overall, Binance has denied the reports that it was planning to delist US-based tokens from its platform. Furthermore, Binance has also indicated that it is working on clarifying its position regarding US tokens and any action it takes in the future will be in line with regulatory guidelines.
