• Binance CEO Changpeng ‘CZ’ Zhao has denied reports that his exchange is looking to sever ties with US-based projects.
• Reports suggesting the exchange was planning to delist all US-based tokens were false.
• Binance has been subject to a lot of FUD over the past few months, with negative coverage heightening following the collapse of crypto exchange FTX.
Binance Denies Report of Delisting US-Based Tokens
False Rumors Surrounding Exchange
Binance CEO Changpeng ‚CZ‘ Zhao has denied reports that his exchange is looking to sever ties with US-based projects. His comments followed an earlier report that cited familiar sources as saying Binance was planning to delist all US-based tokens. One of those to be delisted ostensibly being USD Coin (USDC), a stablecoin issued by US-based financial services firm Circle. But in a tweeted response to one of the reports, Zhao termed the report as „false.“ He went on to suggest that this wouldn’t be the case given „blockchain has no borders.“
FUD and Negative Coverage
It’s notable that Binance has been subject to a lot of FUD over the past few months, with negative coverage heightening following the collapse of crypto exchange FTX. Today’s reports on Binance comes just days after the US Securities and Exchange Commission (SEC) said it was suing Paxos, the US-based issuer of the Binance USD (BUSD) stablecoin. The regulator has labelled BUSD as an „unregistered security.“ That on top of the New York Department of Financial Services ordering Coinbase in March 2020 not to do business in New York State due its lack of proper licensing have added fuel to rumors surrounding Binance’s alleged plans for delisting tokens from their platform.
Focus on Education and Compliance
In light of these issues, Zhao suggested it is better for exchanges like Binance focus on education, compliance and product & service – instead of getting bogged down by FUD, fake news attacks etc – if they want look at operating in regulated markets such as USA or Europe.
Pulled Back From Some Deals
Although CZ denied any plan for delisting tokens from their platform, he did acknowledge that they had pulled back from some potential investments or bids on bankrupt companies in USA – at least for now – until they get permission first.
The denial by CZ could put an end speculation around whether or not Binance will be exiting USA market completely anytime soon or restrict trading activities related with certain tokens including USD Coin (USDC). However, he clarified that decisions regarding future operations are still up in air pending regulatory clearance from concerned authorities .