CZ denies report Binance is considering major breakup with US business partners

Binance CEO Changpeng Zhao denied reports that the company is considering cutting ties with US business partners. In recent weeks, Binance has come under scrutiny from US regulators.

bloomberg informed On Feb. 17, Binance Holdings is “considering breaking ties with intermediary firms such as banks and service firms and is re-evaluating US venture capital investments,” citing an unnamed source. The source added that US project tokens such as Circle’s USD Coin (USDC) could be delisted.

On the same day, in response to a Bloomberg report, Zhao, often known as CZ, tweeted “4. Lies,” apparently referring to his New Year’s Eve Do’s and Don’ts tweet, where the fourth item on the list was “Ignore FUD, Fake News, Attacks, etc.”

CZ stated in a separate tweet, “We have turned down some potential investments or filings for bankrupt companies in the US at this point.”

On Feb. 13, CZ tweeted that Binance will consider projects in jurisdictions with “permanent regulatory uncertainty.” […] To ensure that our users are protected from any improper harm.” Binance Holdings does not serve US clients, instead they turn to the independent Binance.US.

Both Binance and Binance.US have been the focus of recent US regulatory investigations. The US Securities and Exchange Commission (SEC) is reportedly looking into links between Binance.US and trading firms with direct ties to the Czech Republic.

Binance CEO: Crypto industry likely to move to non-dollar stablecoins

Binance, but not Binance.US, suspended bank transfers in USD on February 8 without explanation, but this action hinted at banking problems. On Feb. 13, the New York City Department of Financial Services ordered Paxos Trust to stop issuing dollar-pegged stablecoin Binance BUSD following reports that the SEC was preparing a lawsuit regarding the coin. As a result, Binance has experienced a spike in withdrawals.

Binance’s Chief Strategy Officer Patrick Hillmann reportedly said on Feb. 15 that the company expects U.S. regulators to levy monetary penalties on companies due to past compliance issues.

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