- Binance.US is trying to improve relations with regulators.
- Binance Chairman Changpeng Zhao is reportedly seeking to reduce his largest stake in the US business.
- Zhao and global companies have had a rocky relationship with US regulators.
As US regulators crack down on crypto companies, many industry participants are exploring ways to avoid upsetting them. One such business is Binance.US.
The global arm of the cryptocurrency exchange has a tenuous relationship with regulators. Fearing that this relationship could tarnish regulators’ view of US business, Binance.US and its founder Changpeng “CZ” Zhaothey are said to be exploring ways to reduce his shares in the company.
Zhao to downgrade Binance
Zhao, the majority shareholder of Binance.US, has been exploring ways to sell part of his shares since the summer of 2022, according to the information a report On Thursday, May 11th.
The Binance boss has reportedly resumed these efforts in recent weeks after CFTC lawsuit against Binanceinternational business.
In March, the CFTC sued Binance and Zhao for allegedly operating an illegal derivatives trading platform in the United States.
The US companies reportedly believe Zhao’s majority stake could become a hurdle during license applications, suggesting that a reduced stake could help the company win favor in the eyes of regulators.
A Binance spokesperson declined to comment on the matter, arguing that Binance.US and Binance are separate entities. Binance.US has not yet responded to a request for comment at the time of writing.
Aside from the problems with the CFTC, the US Department of Justice has It said Binance has been investigating money laundering and sanctions violations since 2018.
Binance.US recently finished A deal to buy Voyager’s assets despite court approval indicates the uncertain regulatory environment in the US. The agreement has obtained court approval though resistance from several regulators.
on the flip side
Why should you bother
Binance is the largest crypto exchange in the world, yet its US business has failed to replicate similar levels of success. The latest report suggests that strained relations with regulators could be a major hurdle.
Read this to learn more about the CFTC case against Binance:
Binance Lawsuit Explained: Why CFTC Participation Is Such a Big Deal
Coinbase receives support from the Chamber of Commerce. Find out more:
“Illegal SEC Actions”: Why the Chamber of Commerce Supported Coinbase Matters