CZ wants to close Binance US.

The Binance.US board of directors voted on whether to liquidate the company, but they were unable to reach a unanimous decision due to strong opposition from Binance.US CEO Brian Shroder. According to reports, Shroder was concerned that a sudden shutdown of Binance.US would negatively impact customers.

With a significant user base, closing Binance.US would have a considerable impact on liquidity and lead to asset sell-offs. However, the decision not to sell the US branch shows that Binance is seeking to address US regulators without disrupting its services.

The U.S. Department of Justice (DOJ) is reviewing fraud allegations against Binance.

Since the beginning of this year, the world's largest cryptocurrency exchange has been under close scrutiny from regulators. On March 27, the US Commodity Futures Trading Commission (CFTC) also sued Binance and Zhao, alleging that the company intentionally offered cryptocurrency derivatives products that were not registered in the US. On June 5, the US Securities and Exchange Commission (SEC) sued Binance, Binance.US, and CZ, accusing these companies of operating as an unregistered securities exchange.

According to a report from Kaiko, Binance.US's market share dropped by more than 20% to approximately 0.9% on June 26th. It's clear that, despite CZ's exchange quickly denying the allegations to reassure investors, facing a strong competitor like the SEC, the exchange still suffered significant losses.

However, the regulatory "storm" isn't just happening in the US. The Nigerian Securities and Exchange Commission (SEC) has warned investors against trading because Binance is not permitted to operate there.

Despite the challenges, Binance continues to expand its business operations in many parts of the world. On August 1st, Binance launched a new branch in Japan, offering spot trading for 34 tokens. According to CoinTelegraph , the exchange plans to transfer global users residing in Japan to Binance Japan starting August 14th to comply with the regulatory framework there.

CZ stated that amidst the regulatory and transparency risks associated with stablecoins, diversification is crucial. The Binance CEO stressed the need for caution with stablecoins like Tether (USDT) and acknowledged that even Binance USD (BUSD) carries unforeseen risks.

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