Binance Executive Voices Concerns Over US Regulatory Environment for Crypto Businesses
During a Financial Times summit, Patrick Hillmann, Chief Strategy Officer at Binance, expressed frustration with the current regulatory landscape in the United States, stating that it is "highly challenging" for cryptocurrency firms to operate there.
Hillmann pointed to the Securities and Exchange Commission's (SEC) actions against rival exchange Coinbase as an illustration of the complex situation in the US. He described the country as being in a "peculiar position" at present.
In a recent development, the Commodity Futures and Trading Commission (CFTC) filed charges against Binance and two top executives, accusing them of willfully evading US regulations. The CFTC is seeking penalties, disgorgement, and permanent bans on trading and registration for the digital asset company.
In response to regulatory frustrations, Coinbase CEO Brian Armstrong has contemplated relocating the company's headquarters out of the US. Additionally, another operator, Bittrex, withdrew from the US market due to regulatory concerns before recently filing for bankruptcy.
Hillmann noted that he anticipates the US will eventually aim to catch up with Europe, which has recently passed the Markets in Crypto-Assets (MiCA) regulation, seen as a significant advancement.
Meanwhile, Binance is committed to pursuing regulatory compliance in the United Kingdom. Hillmann stated that the company will do everything within its power to secure appropriate regulations in the UK.
In 2021, the Financial Conduct Authority (FCA) ordered Binance to cease regulated activities in the UK. The following year, Binance regained access to Faster Payments through a partnership with Paysafe; however, this agreement was terminated by Paysafe in March.