Binance US, the US arm of cryptocurrency exchange Binance, is seeking to reduce its founder, Changpeng Zhao’s stake in the company to improve its relationship with local regulators. The move comes after U.S. authorities stepped up their oversight of Binance and other crypto-asset market players.
Binance US wants to move away from its founder
Binance US, the US arm of Binance, is reportedly exploring a way to reduce Changpeng Zhao’s shares in the company in order to establish better relations with local regulators, who have been particularly active in monitoring against the cryptocurrency giant.
It is the media The Information which reports this information, citing 2 people close to the case who wished to remain anonymous. Thus, it turns out that Changpeng Zhao would seek to reduce its participation in the American exchange since last summer, that is to say for a little less than a year. specify that CZ is the majority shareholder of Binance US.
The management of the American exchange thus hopes to restore its image by putting a little distance with its founder, a target favored by international regulators given the aura of Binance, which sees almost 10 billion dollars circulating a day on its platform.
At the end of March, the CFTC attacked Binance and its CEO head-on, accusing the platform of letting American citizens use its platform illegally or even allowing its employees to trade on its platform, which had given rise to public explanations from Changpeng Zhao.
It would therefore seem logical that Binance US would like to break away from this kind of business, the branch having been specifically created to comply with US jurisdiction.
Although a prime target, Binance is far from the only platform targeted by regulators. We can cite Kraken, which found itself forced to pay a $30 million fine to the Securities and Exchange Commission (SEC) because of its staking offer, or more recently Bittrex, which voluntarily filed for bankruptcy due to regulatory uncertainty in the USA.
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Source: The Information
Image source: Web Summit via Flickr, CC BY 2.0
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Maximilien Prue
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