According to recent reports, Binance’s board debated whether to close its US operations in 2023 due to increasing regulatory pressure.
According to The Information, Binance’s CEO, Changpeng “CZ” Zhao, attempted to shut down the exchange’s US operations earlier this year.
The company’s board of directors engaged in a complex debate, but they couldn’t reach a consensus regarding the closure of the US branch.
Brian Shroder, the CEO of the US operations, opposed the decision to close the company, while CZ insisted on proceeding with the closure of the US branch.
One of CZ’s main reasons for wanting to close the US operations was the challenging regulatory landscape faced by the crypto industry in the US, including Binance.
Regulatory Complexity Hits Crypto Industry in the US:
In recent months, the US crypto industry has faced challenging regulations, with the SEC targeting players like Coinbase and Ripple. Binance is also dealing with charges from the CFTC and SEC for offering unregistered crypto derivatives and operating as an unregistered securities exchange.
As a consequence of the ongoing lawsuits, Binance has been laying off numerous employees in its US operations. In July, the company announced a shift to crypto-only operations and the delisting of several US dollar-denominated trading pairs.
During the past few weeks, cryptocurrency exchanges in the US have experienced a significant loss of users.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News and Threads App
