Binance.US’ growth opportunities are limited due to the business’s ties to global platform CEO Changpeng Zhao and the current regulatory environment. This follows from an internal presentation seen by sources. The Block.
The implementation of the company’s roadmap is possible if CZ were to sell its shares or transfer them to blind trust.
Other options include Zhao settling with regulators or Congress passing some form of regulation of the industry.
Only in this way will the platform be able to implement initiatives to launch new products, including stocks and futures, as well as obtain licenses for trading derivatives.
The second scenario of the roadmap assumed a decrease in investment. This would allow resources to be directed toward specific exchange upgrades, but would require a willingness to take this step during the current bear market.
The third option was to “freeze” development until the situation in the company improved significantly. This would provide an opportunity to reduce negative cash flows while maintaining normal business operations and licenses.
Amid regulatory pressure, Binance.US’ monthly trading volume collapsed from $10.6 billion in January to $70 million in August, according to The Block.
Data: The Block.
On June 5, the SEC sued the exchange and Zhao. The commission brought 13 charges, including the sale of unregistered securities.
On June 6, the regulator sent a request to freeze the digital assets of the company’s American division. The SEC accused executives and Zhao himself of diverting client funds to his own investment funds.
On June 9, users of the platform lost the ability to deposit dollars, which caused sales from those wishing to withdraw funds in fiat.
On June 17, the SEC and Binance entered into an agreement regarding client funds in the United States. The exchange resumed the withdrawal of assets, but the company warned that the situation could change.
Let us remind you that on September 13 it became known about Brian Schroeder’s resignation from the post of CEO of Binance.US. At the same time, the American division laid off about a third of its employees, or about 100 people.
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2023-09-14 12:11:28
#prospects #Binance.US #unclear #sells #stake #ForkLog
