• Binance, the largest cryptocurrency exchange in the world, is reportedly considering ending relationships with U.S. business partners due to a tightening of regulatory policies by the Securities and Exchange Commission (SEC).
• Binance CEO Changpeng Zao (CZ) has refuted these allegations on Twitter.
• The crypto space has had a rough Q1 amid intense scrutiny from U.S. regulators, despite recording a crypto bull run that is barely starting to take shape.
Binance Considers Ending US Relationships
According to a Bloomberg report, crypto exchange Binance is considering ending relationships with U.S. business partners due to a tightening of regulatory policies by the Securities Exchange Commission (SEC).
SEC Accuses BUSD of Being Security
The SEC has accused BUSD, a stablecoin pegged to the US dollar, of being a security and suing the crypto firm Paxos which has caused an escalation of concern and uncertainty between exchanges and the U.S. watchdog’s regulation policies.
Binance CEO Denies Allegations
Binance’s CEO Changpeng Zao (CZ) denied the allegations in a Twitter post saying it was false information. CZ has been embroiled in controversy lately as Reuters reported that $400 million was moved from one of Binance’s “secret” accounts paired with its subsidiary Binance US which involved Silvergate Bank – a crypto-friendly bank – and CZ’s trading firm Merit Peak which was incorporated in British Virgin Islands in 2019 and invested over $1 million into Binance US platform at the time.
Crypto Space Has Rough Q1
The crypto space has had a rough Q1; despite recording a crypto bull run that is barely starting to take shape causing many questions and uncertainties among investors across all nations including those based in USA jurisdiction about whether new regulations will be introduced for cryptocurrencies or not?
Conclusion
Despite refuting any possible claims by SEC against BUSD as well as moving funds from secret accounts paired with its subsidiary, it seems clear that there are still many questions about how cryptocurrency exchanges are operating within different countries’ jurisdictions – particularly when it comes to taxation laws – and what impact this could have on traditional finance institutions around the world in terms of their relationship with digital assets going forward?