The global cryptocurrency exchange, Binance, is holding its cards close to its chest amid rumors of a near-collapse of its U.S. operations. These reports suggest that Changpeng Zhao, the trailblazing CEO of Binance, had considered pulling the plug on its American subsidiary to safeguard the broader corporate enterprise.
Confidential insiders have divulged to tech media that an intense board meeting at Binance’s American branch, Binance.US, sparked a discussion on whether to dissolve the company. While a consensus wasn’t achieved, it’s worth noting that Binance.US CEO, Brian Shroder, was firmly against the idea.
Shroder, it’s understood, feared the sweeping implications of a hasty closure. He expressed his concerns about the domino effect it would have on users who would suddenly find themselves scrambling to either shift or sell off their assets.
The heat is on Binance and Zhao, with the U.S. regulatory bodies zooming in on their operations. Recently, both the U.S. Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission have slapped lawsuits against them. The allegations include trading violations and accusations of risking investor interests to amass billions in profits.
Nevertheless, regulatory hiccups have not dimmed Binance’s expansion plans. Recently, the company proudly unveiled Binance Japan and started offering spot trading for 34 tokens. The idea is to gradually move its Japan-based users to this localized version starting August 14, thereby complying with the nation’s regulations.
Zhao, during a recent Q&A session on Twitter (now known as X), broached the subject of regulatory and transparency issues surrounding stablecoins. He emphasized the necessity of diversity in this context. He also conveyed his wariness of major stablecoins like Tether, and candidly acknowledged that even Binance USD was not immune to unforeseen risks.
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