2023-08-02 19:10:12
© Reuters Binance Nearly Closed US Unit to Protect Global Operations
CriptoFácil – The founder and CEO of Binance, Changpeng Zhao (CZ), would have tried earlier this year to shut down the activities of Binance.US, the US subsidiary of the exchange, in order to protect the operations of Binance Global.
According to a report by The Information, published on Tuesday (1st), sources said that the board of directors of Binance.US, of which CZ is chairman, held a vote on the liquidation of the company, which obtained a valuation of $4.5 billion from investors last year.
However, the board did not achieve the unanimous support required by the decision. The CEO of the US unit, Brian Shroder, was the only one resisting the decision. He opposed the Binance.US liquidation because he feared that a sudden shutdown could hurt the US exchange’s customers. This is because, in the event of liquidation, customers would be forced to quickly move or liquidate their assets.
Sought by the report, Binance declined to comment.
Binance in the crosshairs of regulators
Binance and CZ have become targets of US regulators in recent months and have been targets of regulators in other countries for longer.
In the US, the exchange is under the scrutiny of regulators such as the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
The CFTC sued the exchange for operating an “illegal” exchange and having a “false” compliance program. Meanwhile, the SEC sued the exchange and CZ, saying Binance artificially inflated its trading volumes, embezzled client funds, failed to restrict U.S. clients, among other allegations.
Despite regulatory challenges and risks, Binance is determined to expand its business in various parts of the world. On August 1st, for example, the company officially announced the launch of Binance Japan, making 34 tokens available for spot trading.
As part of complying with the country’s regulations, the exchange has plans to migrate its global users who are in Japan to its local version starting August 14. In this way, Binance seeks to ensure compliance with Japan’s regulatory framework during its operations in the country.
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