![]() ![]() The CFTC and SEC lawsuits are perhaps the most imminent regulatory challenge for Binance, but they are far from the only ones. “Binance is signaling that they want to work with the regulators.” Teng’s appointment “checks the boxes for trust,” said Campbell Harvey, a finance professor at Duke University. The apparent bet: Teng’s resume, with senior positions at Singapore’s central bank and Abu Dhabi’s international free-trade zone, makes him the ideal candidate to help steer Binance through the regulatory hurricane bearing down on it. In late May, Zhao appointed him as head of all regional markets outside the US, which is run as a separate entity. ![]() This is the bleak environment into which Teng, a 52-year-old Singaporean, has been thrust following a meteoritic rise in his less than two years at Binance. Two months before Binance Australia said payments-solution provider Cuscal had pulled support for Aussie dollar deposit services, a UK banking partner stopped providing support to the exchange for transactions in British pounds. Even Dubai, Zhao’s adopted home and seen as a free-wheeling crypto hub, has tightened scrutiny of license applicants including Binance. At least four US federal agencies are investigating or bringing enforcement action against it, and regulators in Canada and Australia are looking into its business. Read more: SEC Sues Binance and CEO Zhao for Breaking US Securities Rulesīinance still handles more trading than all other top centralized crypto exchanges combined, yet never has its position seemed so precarious. Zhao has disputed the characterization of many of the issues alleged by the CFTC. See related article: Binance.Binance didn’t respond to requests for comment on succession. Zhao rejected the CFTC’s allegations, saying the regulator’s complaint “appears to contain an incomplete recitation of facts.” In the U.S., the Commodity Futures Trading Commission (CFTC) sued Binance and Zhao in March, for allegedly offering unregistered cryptocurrency derivatives in the U.S. Those guidelines require crypto trading platforms to follow custody rules, ensure segregation of crypto assets held for local clients and refrain from offering margin, credit or other forms of leverage.įailure to comply would require companies to offload Canadian users and block the jurisdiction. The company added that, while the Canada market is small, “it held sentimental value” as the home country of its founder Changpeng Zhao, who is a Canadian citizen.īinance said it is sending out emails to Canadian users detailing its next steps and how the company’s withdrawal from the country will impact their accounts.īinance’s exit comes after the Canadian Securities Administrators regulatory body said in February that crypto firms planning to operate in Canada must register their compliance with a new set of regulatory guidelines. “Unfortunately, new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time.” “We had high hopes for the rest of the Canadian blockchain industry,” Binance said in the tweet. But, it said, “it has become apparent that there are none.” The company announced in a tweet on Friday that it had put off the exit decision as long as possible in order to explore ways to protect its Canadian users. ![]() See related article: Binance.US cites ‘hostile’ regulator, yanks US$1.3 billion deal to buy Voyager Digital Fast factsĪmid heightened regulatory oversight aimed at the crypto exchange in the U.S., Binance has now decided to exit the neighboring Canadian market. ![]()
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