REGULATION

Binance reassesses regulatory risks, CZ: Temporarily withdraws investment in the United States

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Binance reassesses regulatory risks, CZ: Temporarily withdraws investment in the United States

Binance founder Zhao Changpeng confirmed on Twitter that some potential investments or bids for bankrupt companies have been temporarily withdrawn.

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One after Another

It is unclear whether it is due to the numerous major incidents in the cryptocurrency circle last year, but starting this year, U.S. regulators have increased their regulatory efforts.

First, the crypto-friendly bank Signature announced in February that it would no longer support transactions under $100,000 for Binance. This was followed by the SEC considering Binance's stablecoin BUSD as a security, and the New York Department of Financial Services also requested Paxos to halt the issuance of BUSD.

Although some in the industry believe that the U.S. regulators are targeting Binance, many cryptocurrency companies have been affected by this crackdown, including the U.S. compliant exchange Kraken, which was fined $30 million by the SEC for failing to register its staking service plan.

Setting aside conspiracy theories, it seems that the focus of the U.S. regulatory agencies this time is to limit the interaction between the cryptocurrency circle and the U.S. financial system, including Signature's restriction on dollar transactions and the strengthening of stablecoin regulations.

Jonana Wasick, a partner at the U.S. law firm BakerHostetler, said:

"If a company uses U.S. dollars or conducts transactions in U.S. dollars, even in a minimal way, it may increase the likelihood of its interaction with the U.S. financial system, which could attract regulatory attention."