Binance CEO Changpeng Zhao has dismissed rumors of the exchange considering the delisting of US-based cryptocurrencies amid growing regulatory scrutiny in the country
Binance CEO Changpeng Zhao, also known as CZ, has denied reports of the exchange considering delisting US-based cryptocurrencies in a series of tweets.
The reports followed scrutiny from regulators, as Binance is not authorized to serve crypto customers in the US.
The exchange has reportedly been probed by the Securities and Exchange Commission, Commodity Futures Trading Commission, Justice Department, and the Internal Revenue Service.
According to a Bloomberg report, Binance is on the cusp of ending relationships with US business partners, including intermediary firms such as banks and services firms. The exchange is also reassessing venture-capital investments in the US.
The exchange is also weighing delisting tokens from any US-based projects, including Circle’s stablecoin USD Coin.
CZ has stated that the report is “false,” describing the rumors as “FUD,” an acronym for “fear, uncertainty, and doubt.” He added that it is hard to even define what a U.S.-based token is due to the decentralized nature of the industry.
Binance has faced increasing scrutiny from regulators in recent months, leading to a net outflow of $1.9 billion in assets from the exchange, according to data estimates from Nansen.
The clampdown on Binance’s stablecoin BUSD, issued by Paxos, has led to $2.3 billion in redemptions of the tokens in just a couple of days.
Binance’s stablecoin partner Paxos Trust Co. recently received an order from the New York State Department of Financial Services to stop the issuance of the high-flying Binance USD stablecoins.
Apart from Binance, other prominent crypto firms were also recently forced to abandon the market.