United

April

<![CDATA[<figure class="image"><img src="https://cimg.co/news/124908/329944/kanchanara-eyabhdagbe-unsplash.jpg" alt="binance us, mass layoffs, crypto regulation" srcset="https://cimg.co/news/124908/329944/responsive-images/kanchanara-eyabhdagbe-unsplash___media_library_original_1920_1277.jpg 1920w, https://cimg.co/news/124908/329944/responsive-images/kanchanara-eyabhdagbe-unsplash___media_library_original_1200_798.jpg 1200w, https://cimg.co/news/124908/329944/responsive-images/kanchanara-eyabhdagbe-unsplash___media_library_original_900_599.jpg 900w, https://cimg.co/news/124908/329944/responsive-images/kanchanara-eyabhdagbe-unsplash___media_library_original_720_479.jpg 720w, https://cimg.co/news/124908/329944/responsive-images/kanchanara-eyabhdagbe-unsplash___media_library_original_600_399.jpg 600w, https://cimg.co/news/124908/329944/responsive-images/kanchanara-eyabhdagbe-unsplash___media_library_original_300_200.jpg 300w" sizes="100vw" width="1920" class="content-img"><figcaption>Photo by <a href="https://unsplash.com/@kanchanara?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Kanchanara</a> on <a href="https://unsplash.com/photos/-EyabHDAgbE?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a></figcaption></figure><p>Binance US, the American subsidiary of the well-known cryptocurrency exchange, is experiencing a series of high-profile departures.&nbsp;</p><p>Today, Sidney Majalya, the Chief Risk Officer, and Krishna Juvvadi, the head of legal, resigned according to <a href="https://www.wsj.com/livecoverage/stock-market-today-dow-jones-09-14-2023/card/binance-us-legal-risk-executives-leave-the-crypto-exchange-vQ1nP5C32KBv3O7neuyN">a report by Wall Street Journal</a>. Their exits followed <a href="https://cryptonews.com/news/binanceus-ceo-brian-shroder-departs-exchange-to-cut-one-third-of-workforce.htm">the recent resignation of Brian Shroder</a>, the firm's President and CEO.</p><p>These departures add weight to <a href="https://www.wsj.com/finance/currencies/binance-us-ceo-leaves-embattled-crypto-exchange-ac93f2b7">speculations about a potential ripple effect</a> of high-level exits at the firm.</p><figure class="media"><oembed url="https://twitter.com/bongbon111/status/1702408369439744455"></oembed></figure><h2 id="the-sec-s-role-in-recent-binance-us-staff-exits">The SEC's Role in Recent Binance US Staff Exits</h2><p>Both departures come amid increasing scrutiny from the U.S. Securities and Exchange Commission (SEC). The <a href="https://cryptonews.com/news/us-sec-sued-binance-cz-monday-whats-complaint.htm">SEC filed a lawsuit against Binance US and its CEO</a> earlier this year, accusing the company of running an unauthorized trading platform in the United States.</p><p>Juvvadi was one of the main liaisons between <a href="https://cryptonews.com/news/hearing-date-set-for-binance-vs-sec-lawsuit-motions-ongoing-legal-battle-heres-what-you-need-know.htm">Binance US and the SEC</a> and joined the company in May 2022. Majalya took on the role of CRO in December 2021.</p><p><a href="https://www.binance.com/en/feed/post/1139343">Binance US commented on the departures</a>, stating, "The SEC's aggressive attempts to cripple our industry and the resulting impacts on our business have real-world consequences for American jobs and innovation, and this is an unfortunate example of that."</p><p>As of the time this article was published, neither Juvvadi nor Majalya have made public statements about their reasons for leaving Binance US.</p><h2 id="mounting-regulatory-hurdles-for-binance">Mounting Regulatory Hurdles for Binance</h2><p>Binance and its U.S. subsidiary, along with co-founder Changpeng "CZ" Zhao, are facing legal action from regulatory bodies such as the SEC and the Commodity Futures Trading Commission (CFTC). The allegations range from operating without proper authorization to offering unregistered securities and violating commodities laws. Due to these challenges, <a href="https://www.binance.com/en/feed/post/618585#:~:text=On%20June%209%2C%20Binance.US,it%20is%20suspending%20USD%20deposits.">Binance US temporarily halted all dollar withdrawals and deposits on June 9</a>.</p><p>Internationally, Binance is also under increased scrutiny. In July, The Australian Securities and Investments Commission (ASIC) <a href="https://www.bloomberg.com/news/articles/2023-07-05/binance-australia-offices-searched-by-regulator-as-part-of-derivatives-probe">inspected Binance's Australian offices</a>, focusing on its now-shut-down local derivatives operations.&nbsp;</p><figure class="media"><oembed url="https://www.youtube.com/watch?v=giWzmkD-fCg"></oembed></figure><p>This follows the <a href="https://asic.gov.au/about-asic/news-centre/find-a-media-release/2023-releases/23-091mr-binance-australia-derivatives-afs-licence-cancelled/#:~:text=Following%20the%20cancellation%3A,close%20any%20remaining%20open%20positions.">revocation of Binance Australia's derivatives license in April</a>. In May, <a href="https://cryptonews.com/news/bitcoin-trading-at-discount-binance-australia-due-upcoming-payment-cutoff-heres-what-you-need-know.htm">Binance suspended PayID AUD deposits</a> due to issues with a third-party payment provider. Regulatory bodies in Europe, such as Belgium's FSMA and Germany's Bafin, have also added to the company's challenges. In June, FSMA ordered Binance to cease all offers of virtual currency services in Belgium, while Bafin Bafin rejected Binance's cryptocurrency custody license application in July.&nbsp;</p><h2 id="binance-us-market-share-takes-a-hit">Binance US Market Share Takes a Hit</h2><p>Binance is currently the largest cryptocurrency exchange in the world with a daily trading volume of close to $4.6 billion. For context, the second-largest exchange, Coinbase, reported a daily volume of $890 million.</p><p>However, Binance US has seen its market share plummet, particularly in the United States. Data from Reuters shows that <a href="https://www.reuters.com/technology/binance-market-share-takes-regulatory-hit-its-us-affiliate-shrinks-2023-07-05/">its U.S. market share dropped from over 22% in April to just around 0.9%</a> as of June 26. This is further underscored by a <a href="https://www.ft.com/content/037d32e2-fc6e-48a2-bf05-9096fb740f85">global market share drop from 2.39% to just 0.6%</a>.&nbsp;</p><p>The unfolding events at Binance US, marked by leadership exits and escalating regulatory scrutiny, place the company at a pivotal crossroads. Whether Binance US can adapt to the evolving regulatory landscape and regain its lost market share will be a significant indicator of its future viability.&nbsp;</p><p>As it stands, the challenges are stacking up on multiple fronts, both domestically and internationally. It's a situation that undoubtedly has stakeholders watching closely.</p>
]]>

Binance US Loses Key Executives as Regulatory Issues Intensify – Here's the Latest

Table of Contents

Cryptonews.com

Other articles published on Sep 14, 2023

Crypto lending firm Genesis to cease offering crypto trading

LoudPunx NFT: The Door to the World’s Largest Hip Hop Festival

Introduction to Openfabric.AI

Harga BTC Kembali Duduk di Atas US$26.000, Ini Penyebabnya

OKX Switch McLaren MCL60 Race Car To Stealth Mode For The Singapore Grand Prix

JP Morgan is working on its own blockchain payment system, bullish news for ETH, SHIB and BTCS

Join our free newsletter for daily crypto updates!