In a series of tweets, Binance CEO Changpeng Zhao, widely known as CZ, disputed rumors that the exchange was considering delisting crypto projects from the US.
The reports came as a result of regulatory inquiry because Binance is not permitted to provide cryptocurrency services to American clients.
The Securities and Exchange Commission, Commodities Futures Trading Commission, Justice Department, and Internal Tax Service are apparently investigating the exchange.
According to a Bloomberg story, Binance is about to sever ties with its American commercial partners, including middlemen like banks and services companies. The exchange is now reevaluating American venture capital investments.
Delisting coins from any US-based projects, including Circle's stablecoin USD Coin, is another option being considered by the exchange.
According to CZ, the claim is "wrong," calling the rumors "FUD," an abbreviation for "fear, uncertainty, and doubt." He noted that given the decentralized structure of the sector, it is difficult to even define what a U.S.-based token is.
According to Nansen data projections, Binance has seen a net outflow of $1.9 billion in assets as a result of increased regulatory scrutiny in recent months.
In just a few days, Binance's stablecoin BUSD, issued by Paxos, has been subject to a crackdown that has resulted in $2.3 billion in token redemptions.
The New York State Department of Financial Services has issued a directive to Paxos Trust Co., Binance's stablecoin partner, to halt the creation of the very successful Binance USD stablecoins.
Some well-known cryptocurrency companies, including Binance, have lately been forced to leave the market.