Reports suggest that Binance Holdings Ltd., the world’s largest cryptocurrency exchange, is considering severing ties with its US business partners and delisting tokens from US-based projects amid increased regulatory pressure. The company is reportedly re-evaluating its venture capital investments in the United States and is considering cutting its relationships with intermediate corporations such as banks and services organizations. Binance’s relationships with a key banking partner and stablecoin issuer have been under pressure in the face of intense regulatory scrutiny from US authorities, including the Securities and Exchange Commission (SEC), the Commodities Futures Trading Commission, the Justice Department, and the Internal Revenue Service.
However, Binance CEO Changpeng Zhao has publicly denied rumors of delisting and maintains that the report is false. The US government has not granted Binance Holdings permission to provide cryptocurrency exchange services to local customers, and instead, it relies on Binance.US, another smaller exchange that asserts its autonomy. Zhao recently signaled the potential retreat, saying that the company would review other projects in jurisdictions with ongoing regulatory uncertainty. Binance Holdings won’t be the first company dealing in digital assets to withdraw from the market, following Nexo Inc.’s announcement in December that it would withdraw all of its products and services from the US market.