Binance.US CEO throws in the towel
While the markets have started to rise again this week, the news on cryptocurrencies across the Atlantic is not necessarily very encouraging. On the one hand, there is this anti-DeFi amendment which is causing so much talk in the sector and which should be put to a vote in the Senate today. On the other hand, the good news of last April regarding the CEO of Binance.US seems to have fallen like a breath.
Three months after his appointment as CEO of the exchange platform, Brian Brooks has just announced that he has resigned from his post. On Twitter, the now ex-CEO specifies that this resignation comes due to disagreements in the strategy of Binance.US, without any other details.
Greetings #crypto community. Letting you all know that I have resigned as CEO of @BinanceUS. Despite differences over strategic direction, I wish my former colleagues much success. Exciting new things to come!
– Brian Brooks (@BrianBrooksUS) August 6, 2021
The information was picked up by all the major American media, including Forbes. Brian Brooks’ appointment had been rather well received by the crypto-community. Brooks is indeed a former senior official of the US Treasury, more specifically of the Office of the Comptroller of the Currency (OCC). The OCC is somewhat the equivalent of our Prudential Control and Resolution Authority (ACPR) in France. That is to say the regulator of banks and the financial sector in general.
What consequences for Binance.US and cryptocurrencies in the United States?
In order to comply with the financial regulations of the United States, Binance created in 2019 a subsidiary entirely dedicated to the American market, which has met with great success.
First led by Catherine Coley, who could by the way resume her previous position according to the latest rumors, Binance.US had achieved a big blow by hiring Brooks, a long-time supporter of digital assets. In his previous position at the OCC, he had thus allowed a crypto-bank, Anchorage Digital, to be issued a banking license.
The consequences of this resignation are, to this day, not known. If Changpeng Zhao, CEO of parent company Binance, has not commented on Brian Brooks’ resignation, he remains confident about the future of Binance.US.
Zhao specifies in particular that the change of CEO to come will have no impact for the customers of the platform of exchange on the other side of the Atlantic.
From @BinanceUS chairman of the board @cz_binance https://t.co/uYcSjfRNOX pic.twitter.com/4BFuHQQz2V
– Binance.US 🇺🇸 (@BinanceUS) August 6, 2021
Anyway, this news is a new blow for Binance, affected by many difficulties, especially on the European continent.
It is no longer possible to make deposits via a SEPA transfer and derivative products have been suspended in four territories, including Hong Kong. Regulators have had Binance in their sights for several months now, criticizing in particular its opacity.
In the United States, Binance.US is not the largest exchange platform. Nonetheless, Brian Brooks’ resignation marks a gloomy period for the crypto-asset industry. The latter is subject to pamphlets from senators, a desire to strengthen regulation and therefore a possibility of increased subjection to tax legislation. The vote for or against the anti-DeFi amendment by the Senate will be a first response to the future of Bitcoin (BTC) and altcoins in the United States.
👉 To read – United Kingdom: FCA bans British version of Binance from operating in the territory
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About the author: Benjamin Allouch
Lawyer specializing in digital law and personal data. He quickly became interested in bitcoin and blockchain technology, and founded the blog bitcoin-blockchain.fr. He is interested in the emergence of blockchain law and the legal consequences of this technology.
All articles by Benjamin Allouch.