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"We
pulled back on some potential investments, or bids on bankrupt
companies in the U.S. for now. Seek permission first," Zhao
wrote in a tweet, without elaborating.
The Bloomberg report, which cited an unnamed person familiar
with the matter, said Binance is considering ending business
relationships with banks and services firms in the United
States, amid heightened regulatory scrutiny of the company.
Binance is also reassessing U.S. venture capital investments and
will consider de-listing tokens from any U.S.-based projects,
including the major stablecoin USD Coin, the report said.
Word that Binance may drop its U.S. partners comes a day after
Reuters reported that the global Binance exchange, which is not
licensed to operate in the United States, had secretly moved
more than $400 million from accounts held by its purportedly
independent U.S. partner. That money, according to company
messages, was shifted to a trading firm managed by Binance CEO
Zhao.
"Like every other blockchain company, we are conducting a
careful cost-benefit analysis and will pivot our business as
necessary to protect our global user base," a Binance
spokesperson said. The company did not immediately respond to
questions on which U.S. investments Binance had pulled back
from.
U.S. regulators have stepped up scrutiny of crypto companies
this year. The regulatory action comes after multiple meltdowns
in the crypto sector last year that saw a string of major
industry players in the United States and beyond collapse.
On Monday, New York's top financial regulator ordered the
company behind Binance's stablecoin to stop issuing the token.
Earlier this month Binance said it had suspended all dollar bank
transfers after a U.S. banking partner, Signature Bank, dialled
back exposure to crypto firms.
(Reporting by Jaiveer Singh Shekhawat and Niket Nishant in
Bengaluru; writing by Tom Wilson in London; Editing by Shailesh
Kuber and Susan Fenton)
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