“Blockchain Has No Borders” CZ Denies Binance Leaving US

A Friday report indicated that Binance plans to leave the US and remove tokens from projects based in the country. Not long after, the exchange’s CEO took CZ to Twitter calling the claims “false” and added that “blockchain has no borders”.

Is Binance Leaving the US?

A February 17 report stated that the world’s largest Binance is preparing to leave the United States. The international cryptocurrency exchange is reportedly considering removing all tokens issued by US-based projects and severing ties with companies in the country. The decision, which reportedly stems from the recent increase in regulatory activity, would not affect Binance.US.

Not long after the report was published, Binance CEO Changpeng Zhao took to Twitter to refute the claims. In addition, when another user asked “what is even a US-based token,” CZ agreed, adding that “blockchain has no borders.”

However, Zhao also clarified that his stock exchange has decided to postpone certain investments in the USA, as well as bids on bankrupt companies. According to Binance’s CEO, the company is awaiting regulatory approval before proceeding with its ventures. In late 2022, it was announced that Binance entered into a $1 billion deal to purchase Voyager’s assets.

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Is Binance in trouble in the US?

While many of the recent regulatory actions targeting digital asset firms have not been aimed directly at Binance, they have set alarm bells ringing in certain sections of society. Perhaps the most notable news when it comes to the world’s largest cryptocurrency exchange is the enforcement actions aimed at Paxos.

Paxos is a well-known stablecoin issuer that, among other tokens, offers the Binance token BUSD. The company was recently ordered by the New York Department of Financial Services (NDFS) to stop minting BUSD, allegedly because it has proven unable to continue doing so “safely”. Furthermore, Paxos disclosed that it had received a Wells notice from the SEC as the commission believes that the stablecoin constitutes an unregistered security.

In a Twitter thread, Binance’s CZ explained that the issue of BUSD is not particularly troubling for his exchange and stated that stablecoin is not a big part of the business. However, he admitted that if BUSD is found to be a security, it could have major implications for the future development of digital assets in the US.

In mid-February, several stories directly related to Binance’s regulatory issues also came out. The exchange even acknowledged that its compliance was lacking in the past and that it fully expects to pay some fines, but added that it had since resolved said issues. Recently, a disturbing report stated that Binance had access to Binance.US’ officially independent entity bank accounts and used the access to transfer at least $400 million to a CZ-managed trading firm. However, a spokesperson for Binance called the information “outdated”.

Do you think Binance is facing serious problems in the US? Let us know in the comments below.

About the author

Tim Fries is the co-founder of The Tokenist. He has a B. Sc. in mechanical engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate in the investment team at RW Baird’s US Private Equity division and is also a co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.