According to Bloomberg, Binance is also reevaluating its American venture capital investments and will consider delisting tokens from any US-based enterprises.
Binance has backed away from some possible investments in the United States, according to CEO Changpeng Zhao, following a Bloomberg story that the major cryptocurrency exchange was considering terminating relationships with American business partners.
“For the time being, we have resisted several potential investments or bids on bankrupt enterprises in the United States. First, get authorization “Zhao stated in a tweet without further explanation.
According to a Bloomberg story citing an unnamed source familiar with the situation, Binance is considering terminating business partnerships with banks and service providers in the United States due to increased regulatory scrutiny of the company.
According to the article, Binance is also reevaluating its US venture capital investments and would consider delisting tokens from any US-based projects, including the key stablecoin USD Coin.
The news that Binance may dismiss its US partners comes just one day after Reuters reported that the global Binance exchange, which is not licensed to operate in the US, had secretly transferred more than $400 million (roughly Rs. 3,310 crore) from accounts held by its ostensibly independent US partner. According to corporate messaging, the funds were transferred to a trading entity managed by Binance CEO Zhao.
“Like every other blockchain startup, we are performing a comprehensive cost-benefit analysis and will pivot our business as needed to preserve our worldwide user base,” a representative for Binance stated. Binance did not immediately respond to inquiries about the US assets it had abandoned.
This year, US regulators have increased their scrutiny of cryptocurrency companies. The regulatory action follows a spate of significant industry players in the United States and elsewhere collapsing in the crypto sector last year.
The business behind Binance’s stablecoin was told to halt issuing the token by New York’s top financial regulator on Monday.
Binance announced earlier this month that it has banned all dollar bank transactions when a US banking partner, Signature Bank, reduced its exposure.
