Binance US CEO Brian Brooks resigned from his post on Friday. This could be due to the recent actions of many governments, including the United States. Operations such as these bodies Binance.US continue facing many problems. Differing opinions on how to handle crypto regulation have led to confusion and very likely Brooks ‘ resignation.
In his last tweet, Brooks writes:
“Greetings crypto community. I let you all know that I resigned as CEO of @BinanceUS. Despite differences over the strategic direction, I wish my former colleagues every success. Exciting new things will come!“
It’s really no wonder that the crypto community is experiencing resignations as the raids continue. In July of this year, Ricardo Da Ros, the director of Binance Brazil, also resigned. Similar to Brooks, the reason for Da Ros’ resignation was that there were different opinions about strategic changes after the raids.
In addition, ongoing investigations establish the integrity of Binance.US still in question. Although it is uncertain how these investigations will turn out, a trend is emerging as more and more employees resign.
Binance.US under the microscope
As India Today reports, cryptocurrency exchange Binance is under investigation for possibly facilitating illegal trades through its platform. The exchange may have helped around $ 756 million worth of Bitcoin transactions linked to “criminal activity” in 2019.
The decisive word here is “criminal activity”. During the recent hearings in the Senate and in the EU, there was a lot of talk about illegal transactions and activities.
So the threat of malicious activity is not limited to illegal business; hacking also plays into governments ‘ concerns about potential criminal activity. As you may remember, a group of criminal hackers known as “DarkSide” stopped the operation of the “Colonial Pipeline” and demanded a payment of several million dollars in Bitcoin as ransom.
In response to these attacks and potential illegal trades, the Senate and the EU have pushed for legislation and investigations into cryptocurrencies-and Binance.US paid the price for it lately.
CFTC intervenes in investigation
Earlier this year, the Commodity Futures Trading Commission (CFTC) launched an investigation into Binance.US mixed in. In addition, Gary Gensler, the new chairman of the Securities and Exchange Commission (SEC), has expressed concern about regulatory oversight.
In response to the pressure, Binance has released the following statement:
“We have worked hard to build a robust compliance program that includes anti-money laundering principles and the tools used by financial institutions to detect and combat suspicious activity.“
Despite the ongoing raids and investigations, BNB has surpassed February’s peak of $ 334 and is now at $345. Fortunately, the increase is spot-driven. This means that the price movement of the asset was influenced by the buyers of the asset and not by the derivatives traders. Although time will show the true outcome of BNB and other cryptocurrencies, the future seems optimistic – despite the changes brought about by ongoing regulation.
Text credit: Bitcoinist
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