Binance chooses not to comment on the news of the possible closure of its US subsidiary in order to protect its global company.

Binance declined to comment on a media report that its CEO, Changpeng Zhao, nearly shut down a US subsidiary of the cryptocurrency trading platform to protect its global company..

Citing unnamed sources, the technology publication reported that the board of directors of Binance.US, the US arm of Binance, has begun a vote to liquidate the company. However, failed to reach a unanimous decision as Binance.US CEO Brian Schroeder objected.

An initial report on the Binance CEO’s attempt to shut down the US subsidiary of the exchange. Source: Information

According to the report, Schroeder was concerned that the sudden closure of the US exchange would hurt its users as they would be forced to quickly move or liquidate their assets..

Cointelegraph contacted Binance, but A spokesman for the exchange said he had “no comment” on the matter..

In recent months, Binance and Zhao have been targeted by US regulators.. On March 27, the US Commodity Futures Trading Commission filed a lawsuit against Binance and Zhao for alleged trading violations. On June 5, the U.S. Securities and Exchange Commission also filed a lawsuit against the exchange, its U.S. affiliate, and Zhao, alleging that Binance “became rich” with billions of U.S. dollars, putting investors at risk.

Despite regulatory challenges and risks, Binance continues to expand its business in various parts of the world.. On August 1, Binance officially announced the launch of Binance Japan, offering spot trading for 34 tokens. The exchange plans to migrate its global users from Japan to its local version starting August 14 to comply with the country’s regulatory framework.

In an “ask me anything” session on Twitter (recently renamed X) on July 31 Zhao said that amid the regulatory and transparency risks associated with stablecoins, it is important to diversify.. The DEO noted that it is wary of stablecoins like Tether (USDT) — the largest stablecoin by market cap — and acknowledged that even Binance USD (BUSD) carries unforeseen risks.

Clarification: The information and/or opinions expressed in this article do not necessarily reflect the views or editorial line of Cointelegraph. The information presented here should not be taken as financial or investment advice. All investments and commercial movement involve risk and it is the responsibility of each individual to conduct proper research before making an investment decision.

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About Ankur Jain

I'm Ankur Jain, and I'm thrilled to be part of the team as an editor. I call India my home, and I have a passion for crafting engaging and well-written articles. With a solid background of 7 years in this field, I bring a wealth of experience to my work. It's my pleasure to contribute to the informative and captivating content you'll find on Stay tuned for some exciting stories and news pieces coming your way!

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