Binance.US and founder Changpeng Zhao are seeking ways to reduce the latter’s stake in the latter’s platform amid tight scrutiny from US regulators. About this, citing informed sources, writes The Information.
The management of the US division is concerned that maintaining the current shareholding structure may make it difficult to obtain certain licenses.
The reason for such concerns was the lawsuit CFTC vs. Binance and Zhao on March 27, 2023. The regulator accused the crypto exchange of “deliberate evasion of US law” and non-compliance with the rules.
In response, Zhao said that the Commission’s claims contained “an incomplete statement of the facts” and his company disagreed with the characterization of many of the points.
In the same month, Binance ran into difficulties in an attempt to take over the bankrupt crypto broker Voyager Digital. The firm eventually withdrew its bid, citing a “hostile and uncertain regulatory climate in the US.”
Previously NYDFS drew attention to the issuer of Binance USD (BUSD), Paxos, and ordered the firm to stop issuing the stablecoin.
As a reminder, Binance.US Chief Strategy Officer Patrick Hillmann lamented the pressure from US regulators and expressed hope for improved relations with UK supervisors.
Source: Cryptocurrency
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