Binance Hits Snag As New China-Link Emerges; Are US Customers In Trouble?

Binance news

Binance News: According to information obtained from recent reports, the digital asset trading platform Binance.US, which is owned by crypto mogul Changpeng “CZ” Zhao and was specifically established to cater to clients in the United States, is said to have sizeable tech personnel based out of Shanghai, China.

About 20% Workforce Based In China

According to a report by Bloomberg that cites unnamed sources, the United States currently has approximately one hundred contract workers located in China’s biggest city and a global financial hub Shanghai. The majority of these people are employed in engineering and product-building departments. The proposal to move at least a portion of the workforce to North America has been in the works for at least a year, but there has been very little development on the matter.

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The Commodity Futures Trading Commission sued Binance.US last month, alleging that there were ambiguities between Binance.US and Binance Holdings, the parent company for all Binance subsidiaries and affiliates. The Binance exchange has been accused of running a “intentionally opaque common enterprise” that ought to have been registered with the CFTC a long time ago but wasn’t, according to the agency’s announcement, which also mentions Zhao in its lawsuit and is seeking fines in addition to permanent trading and registration restrictions.

While speaking about the subject of manpower and staff, a spokesperson from Binance.US was quoted as saying:

Binance.US has a global workforce of more than 500 employees and contractors that serve our US-based customers.

Will Binance Face Further Trouble?

According to former senior US government officials quoted by Bloomberg, any linkages to the East Asian country in which Binance was established may cause authorities in the United States to investigate the cryptocurrency exchange further. As reported earlier on CoinGape, the U.S. Securities and Exchange Commission, Justice Department, and Internal Revenue Service have all conducted preliminary research and pursuing their own investigations against Binance.

Binance debuted its US operations back in 2019 using resources and employees “from the international platform, which at the time had operations in China”, according to the report. Some of the personnel based in Shanghai migrated over to the U.S. location over the course of time, while the US subsidiary continued to bring on new contractors based in the city.

In light of this Binance news, the exchange’s native cryptocurrency BNB, witnessed a drop of roughly 0.41% in the past one hour. As things currently stand, the price of BNB is exchanging hands at $329.66 and boasts a market cap of roughly $51 billion.

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Pratik Bhuyan