Binance Denies U.S. Exit Reports

The CEO of Binance has denied rumors that his company is thinking about severing connections with American companies.

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For the time being, we withdrew from several potential offers or investments in bankrupt US enterprises. On Friday, February 17, Changpeng Zhao posted a message to Twitter in response to rumors that his company was abandoning plans to conduct business in the United States.

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Zhao didn't go into further detail with his remarks, which were made in response to a Trade Algo report that the largest cryptocurrency company in the world was considering severing connections with its American business partners.

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According to that story, the corporation was thinking about making this change because of increased regulatory attention in the United States, which cited an unnamed individual with knowledge of the situation.

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Also, it was stated that Binance was reconsidering its venture capital investments in the United States and was considering delisting tokens from its American-based businesses, including the significant stablecoin USD Coin.

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The claim came after Patrick Hillmann, chief strategy officer of Binance, said earlier in the week that the business had "gaps" in its compliance that it had since remedied.

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Speaking to Trade Algo, Hillmann claimed that this was due to the workers of the company being overworked as it grew internationally.

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It's a huge load, Hillmann remarked. As a result, the first two years of our compliance system included some holes.

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Additionally, he stated that Binance is "working with regulators to determine what are the remediations we have to undertake right away to make up for that."

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Hillmann said that those amendments "may be more than just a fine. We simply don't know. Regulators will decide on that.

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According to PYMNTS, a Department of Justice investigation is looking into Binance. Any wrongdoing has been refuted by the company.

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According to unnamed individuals cited in the Trade Algo article, the Commodities Futures Trading Commission is also looking into the company (CFTC).

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Last week, PYMNTS reported that the regulations Binance and other crypto businesses are being asked to abide by are nothing new and that it is becoming clear that crypto companies that wish to continue operating in the "U.S. To regain trust, they must expand their legal and compliance departments.

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This is particularly true if they want to win back the confidence of important banking partners who have grown more apprehensive due to government regulatory crackdowns and the crypto industry's dismal track record of producing profitable enterprises that persist for more than a few years.

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"A little good faith can go a long way in these trying times, where it very well may take numerous company failures to convince the crypto industry to engage more seriously with its emerging regulatory reality," PYMNTS stated.