In response to the rigorous regulatory environment in the United States, Binance U.S. and its founder, Changpeng Zhao (CZ), are actively exploring options to reduce CZ’s stake within the exchange platform.
Since last summer, Changpeng, the CEO of Binance, the world’s leading cryptocurrency exchange platform, has been actively looking to sell some of his Binance U.S. stakes.
The strict regulatory crackdown in the U.S. has intensified since the collapse of the FTX cryptocurrency exchange, which occurred last year. United States federal regulators have subjected Binance and Changpeng Zhao to intense scrutiny throughout the past year.
The U.S. Commodity Futures Trading Commission (CFTC) took legal action against Binance and its CEO Zhao in March, accusing them of operating an exchange that the regulator deemed “illegal” and maintaining a compliance program that was labeled a “sham.”
CZ, in response to the allegations from the CFTC, vigorously defended Binance by emphasizing its cutting-edge technology, which he proudly proclaimed to be the epitome of compliance standards.
He confidently asserted that Binance possesses an impressive global tally of 16 licenses, and the user community holds it in high esteem. Furthermore, he clearly stated that Binance abstains from engaging in profit-driven trading or any form of market manipulation, come what may.
As per the report, the Binance.US leadership has been discussing reducing CZ’s stake, hoping to improve the company’s reputation among U.S. regulators. The executives at Binance.US have expressed concerns that CZ’s involvement in the CFTC lawsuit could hinder the acquisition of necessary regulatory licenses in the U.S. as long as he remains the majority owner.
Hence, reducing his stake is being explored to eliminate any obstacle in the company’s path toward obtaining the desired regulatory approvals.
Source: https://www.cryptopolitan.com/binance-u-s-founder-cz-explores-stake-reduction-amidst-regulatory-scrutiny/