• Binance CEO Changpeng ‚CZ‘ Zhao has denied reports that his exchange is looking to sever ties with US-based projects.
• The denial follows an earlier report citing sources as saying Binance was planning to delist all US-based tokens.
• Binance has endured a lot of FUD over the past several months, particularly after the collapse of FTX.
Binance Denies Reports to Delist US-Based Tokens
Binance CEO Changpeng ‚CZ‘ Zhao has denied reports that his exchange is looking to sever ties with US-based projects. In a tweeted response to one of the reports, CZ termed it false and suggested this wouldn’t be the case given blockchain’s borderless nature. He further acknowledged that Binance had „pulled back“ on some deals but noted this was just „for now.“
Causes for FUD
Binance has endured a lot of FUD over the past several months, particularly after the collapse of FTX. This week, Bloomberg reported that sources claimed Binance was looking to end relationships with its partners in the US including banks and reassessing its venture investments in the country.
SEC Lawsuit on Paxos
This comes days after the US Securities and Exchange Commission (SEC) said it was suing Paxos, the issuer of the BUSD stablecoin issued by Binance. The regulator labeled BUSD as an unregistered security and New York Department of Financial Services ordered PAXOS Global LLC to stop offering services without necessary licenses or charters from New York State banking authorities.
Focusing on Education & Compliance
In light of these developments, CZ took to Twitter emphasizing for better education & compliance rather than ignoring FUDs and fake news attacks etc. He also reminded investors about seeking permission from regulators before making any investments or bids on bankrupt companies in the US.
Conclusion
The crypto space is rapidly evolving but not always following regulations set up by governments worldwide or financial bodies like SEC or NYDFS which makes it hard for investors due to lack of certainty regarding legality of certain activities related cryptocurrencies within their jurisdiction . Despite such negative press and regulatory scrutiny surrounding cryptocurrency industry , it seems like exchanges like binance are still confident about future prospects in this space.
