According to a new report from Bloomberg, Binance, the world’s largest cryptocurrency exchange, may sever ties with its partners in the US. CEO CZ has clarified Bloomberg’s claims in the past hours.
Can Binance end its US operations?
US regulators SEC and New York Department of Financial Services (NYDFS) recently banned the printing of Binance-branded stablecoin BUSD. After that, BUSD lost its price stability and experienced a significant drop in volume.
New allegations by Bloomberg suggest that Binance will cut off all ties to its US partners, including the company Circle, behind USDC to avoid damage. Responding to the FUD news surrounding Binance since day one, CZ soon denied these allegations on his Twitter account.
Binance CEO CZ denies the news spread by Bloomberg’s claims. Recently, he replied to one of these news on his Twitter account as “wrong”. The related article reads, “Bloomberg report: Binance drops delisting of all US-based cryptocurrencies.”
“For now, we have withdrawn some potential investments or tenders to bankrupt companies in the US,” CZ said in another tweet. cryptocoin.com CZ, who also made a statement about the decrease in BUSD, which we have quoted as the BUSD, emphasized again that the reserves are supported 1:1.
Bloomberg’s claims
Circle, the company behind USDC, warned NYDFS months ago that it was unable to maintain sufficient reserves for Binance’s issued tokens, according to Bloomberg. Allegedly, Circle’s move comes months before Paxos announced on Monday that it had terminated its relationship with Binance around BUSD at the behest of the New York regulator.
Circle’s warning claims that USDC is also under-collateralized by Binance from time to time. According to the source contacted by Bloomberg, Binance once supported $1.7 billion worth of USDC using only $100 million worth of real USDC as collateral.
The recent sanctions action against BUSD could work in Circle’s favor, reversing the results of Binance’s game to delist a number of stablecoins, including USDC, in September. The delisted stablecoins continued to be backed by Binance, but would be automatically converted to BUSD when they reach the exchange. While Circle CEO Jeremy Allaire claimed that it was good for USDC at the time, BUSD’s share of the stablecoin market increased afterward.
CZ confirms Binance will make product adjustments
This week, the US Securities and Exchange Commission (SEC) sued Paxos, the company authorized to print Pax Dollar (USDP) and Binance USD (BUSD), over BUSD and banned it from printing new BUSD. With BUSD starting to slow down, Binance had to change its stance towards stablecoins sent to its platform. CEO CZ confirmed that shortly after the decision, the company will make product adjustments, including moving away from BUSD:
Binance will continue to support BUSD for the foreseeable future. We anticipate users to migrate to other stablecoins over time. We will make product adjustments accordingly. Move away from using BUSD as the main pair for trading.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your own research and due diligence before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. Therefore, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.