CZ Wants to Shut Down Binance US

The Binance.US board of directors voted on whether to liquidate the company, however, they were unable to reach a unanimous decision due to strong opposition from Binance.US CEO Brian Shroder. Shroder reportedly worried that an abrupt shutdown of Binance.US would be detrimental to customers.

With a large user base, the closure of Binance.US would have a significant impact on liquidity and asset sales, but the decision not to sell the US branch suggests that Binance is looking for a way to deal with US regulators without disrupting services.

The US Department of Justice (DOJ) is looking into fraud charges against Binance

The world’s largest cryptocurrency exchange has been under intense regulatory scrutiny since the start of the year. On March 27, the U.S. Commodity Futures Trading Commission (CFTC) sued Binance and Zhao for allegedly offering unregistered cryptocurrency derivatives in the U.S. On June 5, the U.S. Securities and Exchange Commission (SEC) sued Binance, Binance.US, and CZ, alleging that the companies operated as unregistered securities exchanges.

According to a report from Kaiko, Binance.US's market share dropped by more than 20% to about 0.9% on June 26. It can be seen that although CZ's exchange quickly took steps to deny the allegations to reassure investors, against a strong opponent like the SEC, the exchange still suffered a significant loss.

However, the regulatory “storm” is not only happening in the US. Nigeria’s Securities and Exchange Commission (SEC) warned investors not to participate in trading because Binance is not allowed to operate there.

Despite the challenges, Binance continues to expand its operations in various parts of the world. On August 1, Binance launched a new branch in Japan, offering spot trading for 34 tokens. According to CoinTelegraph , the exchange plans to bring its global users living in Japan to Binance Japan starting August 14 to comply with the regulatory framework there.

CZ stated that amid the regulatory and transparency risks associated with stablecoins, it is important to diversify. The Binance CEO stressed caution with stablecoins like Tether (USDT) and admitted that even Binance USD (BUSD) has unforeseen risks.

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