Faced with threats from U.S. regulators, crypto giant Binance is reportedly considering removing tokens from U.S.-based crypto projects including Circle’s USDC stablecoin.
Binance’s CEO reacted to the Bloomberg article on Twitter, suggesting that it would only be a matter of pulling back on certain investments in the US.
“We have backed off on some potential investments or offers on failed companies in the US at this time. Ask for permission first…
Citing a source close to the matter, it turns out that crypto exchange Binance has been questioned by several US regulators including the much-feared Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), the Department of Justice, and the US Internal Revenue Service (IRS).
In response to the crackdown by U.S. regulators, Binance may therefore sever its relationships with U.S.-based companies in order to avoid prosecution by U.S. authorities who have decided to hunt down crypto startups, even if it means fleeing them abroad, such as Nexo, which has announced its departure from the U.S. after having to pay a $45 million fine.
“Binance Holdings is considering severing ties with intermediary companies such as banks and service companies and re-evaluating venture capital investments in the U.S., according to the person, who asked not to be identified in discussing details that had not yet been made public.
It is considering removing tokens from all U.S.-based projects, including Circle’s USD Coin stablecoin, the person said,” the Bloomberg source said.
In addition, crypto exchange Binance is also in the crosshairs of regulators for mistakes made a few years ago, with the company expecting to pay hefty fines to settle these issues with U.S. regulatory authorities.