Binance may close its US unit
Binance may close its US unit
Cryptocurrency exchange Binance is considering shutting down its U.S. division due to increasing pressure from U.S. regulators.
The Binance.US board of directors, which includes Changpeng Zhao as chairman, considered liquidating the cryptocurrency exchange at a recent meeting, but failed to reach a consensus.
The U.S. unit only survived thanks to its CEO Brian Schroeder, who vehemently opposed the site's closure, stating that the company's sudden shutdown could force clients to quickly withdraw their assets, BlockchainReporter stated.
Binance.US has faced many challenges recently. After the Securities and Exchange Commission (SEC) filed a lawsuit against Binance.US, the exchange suspended OTC trading and removed US dollar trading pairs.
In addition, in June, the SEC filed a lawsuit against Binance and its CEO, Changpeng Zhao, charging them with 13 counts, including the creation and use of a "web of deception."
All of these actions led to Binance.US market share is dropping by more than 20%. These events have also impacted Binance, which has been forced to make significant staff reductions.
Binance's intention to close its U.S. operations reflects the common challenges faced by global cryptocurrency companies in a rapidly changing regulatory environment. As a result, the ability of companies to adapt to the new environment will be a major factor in their survival in today's cryptocurrency world.
Also read: FTX may relaunch its crypto exchange for international clients.
