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Binance Eyes Cutting Ties with US Amid SEC Regulatory Pressure

• Binance, the largest cryptocurrency exchange in the market, is considering ending relationships with U.S. business partners due to a tightening in regulatory policies by the Securities Exchange Commission (SEC).
• Binance’s CEO Changpeng Zao (CZ) denied the allegations that it is delisting tokens from firms based in U.S jurisdiction.
• The move came after the SEC alleged that BUSD, a stablecoin pegged to US dollar, is a security and sued crypto firm Paxos.

Binance Considering Ending Relationships With U.S Business Partners

According to a Bloomberg report, crypto exchange Binance is considering ending relationships with U.S. business partners due to a tightening in regulatory policies by the Securities Exchange Commission (SEC).

SEC Alleges That BUSD Is A Security

The move came after the SEC alleged that BUSD, a stablecoin pegged to US dollar, is a security and sued crypto firm Paxos. This has caused concern and uncertainty among exchanges and the U.S watchdog regarding further investments in the United States as they are not licensed to operate there but have been conducting business through its subdiary Binance.US

Binance’s CEO Denies Allegations

Binance’s CEO Changpeng Zao (CZ) denied the allegations of delisting tokens from firms based in U.S jurisdiction on Twitter saying it was false news.

SEC Probes Money Movement Involving Crypto-Friendly Bank Silvergate

According to Reuters, there were allegations of money movement involving crypto-friendly bank Silvergate and its subsidiary Binance.US which sent $400 million from a „secret“ account paired with it’s subsidiary to Merit Peak trading firm owned by CZ which invested over $1 million into the same subsidiary earlier last year for offering services on their platform however only its employees have access to it currently as per statement given by Kimberly Soward spokesperson for BinanceU/S at time of report release .

Crypto Market Experiences Rough Q1 Despite Bull Run Starting To Take Shape

The intense scrutiny from U.S regulators has resulted in crypto market experiencing rough Q1 despite recording a bull run barely starting to take shape causing many questions & uncertainties amongst investors