Binance CEO denies delisting rumors as US regulators ramp up crypto crackdown

Binance being a key player in the crypto industry has made it susceptible to regulatory checkups every now and then. However, the growing differences seemed to be putting pressure on the crypto company to take a few steps back. While the case is true, Binance’s head has a different take on it.

Binance CEO CZ says no to FUD

Binance Chief Executive Officer (CEO) Chengpang Zhao (CZ), in a simple tweet on Friday, denied the reports of the company ending its relations with its US-based partners. CZ tweeted that Bloomberg’s report suggesting the cryptocurrency exchange delisting all its United States-based digital assets was nothing but FUD. 

Bloomberg earlier on February 17 claimed that due to the increasing oversight of government agencies and regulators, Binance was considering severing its ties with its business partners in the country.

Citing personnel familiar with the company, Binance was claimed to be pulling out due to the investigations it has been facing at the hands of Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), Justice Department and more.

However, CZ was quick to dismiss all these rumors stating,

“We pulled back on some potential investments, or bids on bankrupt companies in the US for now. Seek permission first.”

This suggests that CZ and Binance are looking to fall in line with regulations and rules put down by the concerned authorities. Down the line, doing so would eliminate any roadblocks the company might face as it tries to double down on its expansions and partnerships.

Binance, Paxos and SEC

Earlier this week, Paxos stopped the issuance of Binance USD (BUSD) stablecoin following the SEC sending the company a Wells notice. The notice was basically a warning from the agency warning of enforcement action, alleging BUSD was an unregistered security. 

Not soon after the notice, the New York Department of Financial Services (NYDFS) also ordered Paxos to stop the issuance of BUSD until further notice. Binance CEO commented on the SEC crackdown stating,

“Binance will continue to support BUSD for the foreseeable future…Given the ongoing regulatory uncertainty in certain markets, we will be reviewing other projects in those jurisdictions to ensure our users are insulated from any undue harm.”