Crypto giant Binance weighs U.S. retreat as regulatory scrutiny heats up - report

Cryptocurrency exchange Binance Holdings ( BNB-USD ) ( BUSD-USD ) is weighing cutting off its ties with certain U.S. business affiliates as the regulatory crackdown on the industry intensified in recent days, Bloomberg reported Friday, citing a person familiar with the matter. The potential move comes after the New York Department of Financial Services ordered Paxos Trust Company to stop the issuance of new Binance-branded stablecoin BUSD ( BUSD-USD ). The U.S. Securities and Exchange Commission had also taken aim at the stablecoin issuer for allegedly breaching investor protection laws on the basis that BUSD is an unregistered security. The Changpeng Zhao-led company, which has been scrutinized by the SEC as well as other regulators in the country, is considering severing ties with intermediary firms and service firms and is reevaluating venture-capital stakes in the U.S., the person told Bloomberg. Of note, the global Binance exchange does not have the licenses to operate in the U.S. But its purportedly independent U.S. partner, Binance.US, reportedly has no plans to exit the country. “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,” Zhao wrote in a series of Twitter posts earlier this week in response to the Paxos drama. Previously, (Feb. 16) Binance was said to have moved $400M from Binance.US's account at Silvergate Capital in 2021 .