Saturday, August 7, 2021
increasing regulatory pressure
US Head of Crypto Exchange Binance Resigns
The largest cryptocurrency exchange Binance, which has been under a lot of pressure from regulators around the world, has lost its US boss. The former US banking regulator took office just a few months back.
The chairman of the board of the US office of global crypto exchange Binance, Brian Brooks has resigned after only three months in office. Brooks announced his resignation on Twitter, adding: “Despite differences on strategic direction, I wish my former colleagues all the success.”
The former US banking regulator has resigned at a time when regulators in Hong Kong, the United Kingdom, Germany, Japan, Italy and Thailand have cracked down on Binance over investor protection concerns. Regulators around the world fear that the cryptocurrency boom is favoring money laundering and increasing systemic risks.
Binance, one of the world’s largest exchanges in terms of trading volume, is led by Canada’s Changpeng Zhao. It offers worldwide services such as crypto, spot and derivatives trading through tokenized versions of stocks and its own cryptocurrency, Binance Coin.
In response to pressure from regulators, Binance recently restricted certain services for cryptocurrency betting and trading in tokens associated with stocks. In late July, the platform announced that it would be rolling out its futures and derivatives product range across Europe. Users in Germany, Italy and the Netherlands will no longer be able to open new accounts with immediate effect. Binance also promised to increase its compliance staff.
