Binance Considers Severing U.S. Ties in Face of Crypto Crackdown: Bloomberg

Binance Holdings, the world’s largest crypto exchange, is considering severing its ties with U.S. business partners as various government agencies and regulators continue to investigate the company, according to a report from Bloomberg, citing a personal familiar with the issue.

Binance Founder and CEO Changpeng «CZ» Zhao is looking to end relationships with U.S. banks and service firms, and is also re-evaluating its U.S. venture capital investments, according to Bloomberg’s source. Binance is also considering de-listing tokens issued by U.S.-based projects, including Circle’s USDC stablecoin.

Shortly after the report was published on Friday, Zhao denied the exchange was considering de-listing tokens attached to U.S.-based projects on Twitter, adding blockchain «has no borders.»

«We pulled back on some potential investments, or bids on bankrupt companies in the U.S. for now. Seek permission first,» Zhao said in another tweet.

The New York Department of Financial Services earlier this week took action against Binance-branded stablecoin Binance BUSD, which is issued by Paxos, and has been scrutinized for its transactions with crypto bank Silvergate. The crypto exchange has been investigated by the U.S. Securities and Exchange Commission, Commodity Futures Trading Commission, Justice Department and the Internal Revenue Service.

U.S. regulators have been taking heavy enforcement action against crypto players in the last couple of weeks, leaving Binance bracing itself for SEC fines, after crypto exchange Kraken was forced to shut down its staking service and pay up a $30 million fine.

Binance’s U.S. customers are serviced by Binance.US, which claims to operate completely independently and says it has no plans to leave the U.S., according to Bloomberg.

Earlier this month, Binance said it was temporarily suspending U.S. dollar bank transfers by its customers.

Earlier this month, Binance said it was temporarily suspending U.S. dollar bank transfers by its customers.

Binance did not immediately respond to a request for comment.

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

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