• Binance, the largest cryptocurrency exchange in the market, is reportedly considering ending relationships with U.S. business partners due to a tightening in regulatory policies by the SEC.
• The SEC has alleged that BUSD, a stablecoin pegged to the US dollar, is a security and sued crypto firm Paxos.
• Binance CEO Changpeng Zao denied the allegations on Twitter and clarified that Merit Peak is neither trading nor providing services on Binance.US platform.
Binance Considering Delisting Tokens from US-Based Firms
According to a Bloomberg report, crypto exchange Binance is considering ending relationships with U.S. business partners due to a tightening in regulatory policies by the Securities Exchange Commission (SEC).
SEC Alleges BUSD as Security & Sues Crypto Firm Paxos
The SEC has alleged that BUSD, a stablecoin pegged to the US dollar, is a security and sued crypto firm Paxos. In addition, the report said that Binance is reassessing investments in the United States as regulators do not license it to operate in U.S..
Binance CEO Denies Allegations
Binance’s CEO Changpeng Zao (CZ) denied these allegations in a Twitter post clarifying that Merit Peak is neither trading nor providing services on Binance.US platform and only its subsidiary’s employees have access to it.
Controversy around $400 Million Movement from Secret Account
Recently there have been controversies around $400 million movement from “secret” account paired with its subdiary Binance.US involving crypto-friendly bank Silvergate which was sent to trading firm Merit Peak owned by CZ which had invested over $1 million into Biance’s subsidiary earlier this year according to Reuters report .
Crypto Market Experiences Rough Q1 Amid Intense Regulatory Scrutiny
Amidst intense scrutiny from U.S regulators,the crypto space has had turbulent times during this quarter making investors uncertain of their investments despite recording slight rise in prices of some cryptos recently .