Binance to Face Regulatory Issues
Binance CEO issued a new statement to address the ongoing FUD regarding the cryptocurrency exchange. It is worth noting that Binance.US and Binance Global are currently facing regulatory pushback in USA.
The head of the exchange platform namely CZ has recently confirmed the departure of Binance.US CEO Brian Shroder. He also talked about various rumors and speculations that are currently making rounds in the market regarding the trading platform.
Brian Shroder’s Departure
CZ claimed that Brian Shroder is currently taking a well-deserved break following a successful tenure at the firm. Binance.US which is a subsidiary of the Binance Holdings is currently dealing with a massive law suit brought by the Securities and Exchange Commission as well as Commodity and Futures Trading Commission.
In his latest address, the executive directed the consumers and stakeholders of the firm to disregard FUD regarding the trading platform. He claimed that the departure of Shroder was an amicable event. He further noted that during this two year tenure the former employee was able to achieve the objectives that he was set out to accomplish.
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Talking about the tenure and career arc of Brian Shroder, CZ maintained that he successfully raised capital for the company, add value to the products and services offered by the exchange, standardized internal processes, and increase the market share of the firm by many folds.
He claimed that Shroder was able to contribute towards building a strong company and his presence benefitted the investors and clients of the firm at the same degree. Binance is no stranger to regulatory push back.
The firm has had a long history of dealing with lawsuits and legislative challenges in many jurisdictions around the globe.
It has recently become one of the crypto entities to face unregistered securities charges from SEC. At the same time, SEC has also accused the firm of commingling funds between US and international wings.
However, the firm has proceeded to cut down its work force by one-third as a counter measure to deal with the regulatory push back. Meanwhile, some of the top employees of the firm such as chief executive, head of legal, and head of risk management have resigned from their positions.
Hostile Crypto Regulatory Environment
Talking about the recent changes made at the firm, CZ has claimed that during the last two years, regulatory environment in USA has become increasingly hostile towards the crypto sector. At the same time, he also expressed confidence in the newly appointed CEO Norman Reed.
CZ said that Reed is the right person to lead the exchange into a new era. Binance is not the only firm to face charges from regulators. Coinbase is another major exchange that was also hit by similar violations from SEC at the same time.
Analytics firms such as Kaiko have reported a massive drop in the trading volume for Binance.US on account of the ongoing lawsuit. However, CZ has continued to dismiss liquidity issues plaguing the firm and retained that such claims against the company are not based in truth.
On the other hand, Coinbase exchange has filed for a dismissal motion in response to SEC lawsuit. Meanwhile, Coinbase quoted Gary Gensler testimony at the House Financial Services Committee from 2021 where he stated that SEC and CFTC do not have a regulatory framework for domestic crypto exchanges.
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