Binance CEO denies reports of Binance pulling back from U.S. partners
- Changpeng Zhao has denied rumors about Binance Holdings cutting ties with U.S.-based partners.
- A recent report claimed that the crypto giant would soon de-list tokens tied to American crypto firms.
Binance Chief Changpeng Zhao has addressed the rumors about a possible breakup between his crypto exchange and its United States-based partners.
According to CZ, the recent reports claiming that Binance was considering “pulling back from U.S. partners” amid the ongoing regulatory crackdown, are false.
CZ says Binance is pulling back on investments
A recent report from Bloomberg claimed that Binance Holdings ltd, the operator of the world’s largest crypto exchange, was looking to end ties with its American business partners including banks and service firms.
Citing a person familiar with the matter, the report claimed that the possibility of retreat arose due to the increased regulatory scrutiny that led to issues with its banking partner and stablecoin issuer Paxos.
The report went on to claim that Binance Holdings was “reassessing” its venture capital portfolio in the United States, along with other investments.
Bloomberg’s source also revealed that the company was considering de-listing tokens associated with U.S-based crypto firms, including Circle’s USD Coin stablecoin.
Changpeng Zhao stated,
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
Earlier this week, the Securities and Exchange Commission issued a Wells notice to Binance’s stablecoin partner Paxos, which issues BUSD.
The notice informed the stablecoin issuer of the regulator’s intention to bring charges against the firm. This was followed by an order from the New York Department of Financial Services to stop minting BUSD.
Amid the increasing regulatory pressure, CZ tweeted that his team would be reviewing other projects in those jurisdictions to ensure users are insulated from any undue harm.