According to The Information sources, Changpeng Zhao (CZ), the founder of Binance.US, is attempting to sell his shares in Binance.US amid legal restrictions. CZ has been trying to sell his shares since the summer of 2022 because he is trying to reduce the ties between Binance.US and Binance Global.
CZ aims to enhance the reputation of the company by selling his shares
According to Binance.US executives, CZ’s reduction of shares is considered a step towards enhancing the company’s reputation. This move came after Binance.US faced allegations by the U.S. Commodity Futures Trading Commission (CFTC) in March, accusing the company of intentionally violating federal laws and operating an illegal digital asset derivatives exchange.
In March, the CFTC filed a lawsuit against Binance and CZ, alleging that they operated an “illegal” exchange with a “fake” compliance program. The company was accused of violating U.S. laws. At the time, Binance emphasized that they were extremely cautious regarding risk and compliance matters.
Since then, Binance.US executives have been concerned about CZ’s influence on the company and sought ways to reduce his shares and influence, as they believed that without such reduction, they would not be able to obtain certain regulatory licenses.
Companies are leaving the US market!
Due to the increasing pressures from the U.S. Securities and Exchange Commission (SEC) in recent times, many companies have either shut down their U.S.-based operations or relocated to other countries. Coinbase and Gemini are among the most well-known examples.
These regulatory pressures have raised concerns among cryptocurrency exchanges and their executives. CZ’s plans to reduce his shares in Binance.US are seen as a step towards obtaining regulatory licenses and ensuring compliance with regulations.
At the same time, yesterday, Binance chief strategy officer Patrick Hillmann made some statements. In the midst of increasing regulatory challenges in the US market, Hillman voiced his opinion on turning to Europe. Following MiCa very closely, Binance focuses on the UK and aims to be located in a jurisdiction that provides a suitable environment for business operations.
You can find the news we have compiled about Binance’s pursuit of focusing on the United Kingdom in this article.