Binance.US, the US-regulated exchange affiliated with the global cryptocurrency giant Binance Holdings, is currently facing scrutiny over its contract workers in Shanghai, China. According to Bloomberg, which cited two anonymous sources, Binance.US currently employs about 100 contract workers in Shanghai, mostly in development or product-related work.
The report suggests that Binance.US had plans to relocate some of these workers to North America for at least a year, but progress has been slow. The slow progress could potentially cause trouble for Binance.US as regulators could investigate the exchange for having ties to China, which has been a concern for many countries.
The 100 contract workers in Shanghai represent about 20% of Binance.US’s workforce, and their connections to China could raise concerns among regulators in the US. If Binance.US is found to have clear links to China, it could lead to an investigation by US regulators, which could further harm the reputation of the exchange.
However, a spokesperson for Binance.US said that the contract with the technical team of Binance.com was signed at the beginning of its establishment to provide technical infrastructure and other forms of support for the new US-regulated exchange. “Agreements like this aren’t uncommon,” he added. “In fact, the founding team at Binance.US has licensed technology builds to non-Binance affiliates in the past.”
The recent lawsuit filed by the US Commodity Futures Trading Commission (CFTC) against Binance last month also added to the confusion surrounding Binance.US’s connection to its parent company. The CFTC lawsuit claimed that the lines between Binance.US and Binance Holdings were blurred, which could potentially lead to regulatory violations.
Binance US has terminated its asset purchase agreement with Voyager, a crypto lending platform undergoing bankruptcy proceedings. The decision to end the agreement was prompted by the uncertain regulatory climate in the United States, which is affecting businesses across the country.
Binance US announces the difficult decision it had made to exercise its right to terminate the agreement. The exchange had intended to assist Voyager’s customers in accessing their cryptocurrency in kind. However, the unpredictable regulatory environment in the US market has made it challenging for Binance US to operate effectively.
Read more:
- Binance Accused Of Hiding Office In China Despite Withdrawal Claims: Financial Times
- CFTC Files Complaint Against Binance And Founder Over Alleged Violation Of US Regulations
- Binance US Announces Delisting Of SPELL And TRX TRX Price Plummets By 20% In Minutes