According to a new report from The Information, Binance CEO Changpeng Zhao reportedly considered shutting down its US Subsidiary due to regulation concerns. Indeed, the head of the entity weighed potentially closing it for good due to hostilities that it had faced from the country’s regulatory agencies.
Binance is the largest cryptocurrency exchange in the world and has had a very difficult few months in the US. Subsequently, the consideration of ceasing operations in the country is not necessarily a surprising one. Alternatively, the report noted that Binance.US CEO Brian Shroder opposed Zhao’s stance on closure.
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Binance Almost Closed US Subsidiary
The United States has certainly not been kind to digital asset entities operating in the country. However, that treatment got even worse following the collapse of FTX and the uncovered fraudulent activities that the platform had embraced. Moreover, the regulatory scrutiny was so intense, that one of the largest exchanges in the industry considered exiting altogether.
According to a new report, Binance CEO Changpeng Zhao had considered shutting down the company’s US subsidiary due to regulation concerns. Specifically, due to the hostile nature of discussions between the company and regulators. A consideration that is entirely understandable with the company targeted by a host of US agencies.
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However, the report noted that Binance.US CEO Brian Shroder is the individual who kept Zhao from taking the drastic measure. Indeed, the report stated that Shroder opposed the decision in order to protect its customers. Whereas Zhao sought potential closure as a way to protect the international arm of the business.
With a host of cryptocurrency exchange shutdowns throughout 2022, Binance.US certainly would have added to the stress on the market. Moreover, its closure could have had a cataclysmic effect on the industry. Subsequently forcing investors to sell their assets, and potentially hindering the market even more. Especially as it was just finding its footing again in a post-FTX world.
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The report also stated that the Binance.US board of directors had voted on the issue. Zhao maintains the position of Chairman on that board. Conversely, the report stated that the Binance CEO was unable to garner enough support to enact the closure.