CoinDesk: Binance.US to leave Blockchain Association in two years

The crypto exchange will leave the organization due to a controversy that has emerged

21.04.2022 - 12:55

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2 min

What’s new? Binance.US, the American arm of the Binance crypto exchange, will leave the crypto lobbying group Blockchain Association in less than two years due to a controversy, an anonymous source told CoinDesk. According to it, the platform invested a large sum in the Blockchain Association in 2021, with executives negotiating to raise Binance.US’s importance within the organization. However, they concluded that their “values, goals, and standards” are not fully aligned.

Information on the CoinDesk website

How did events develop? Binance.US joined the lobbying group in August 2020. Shortly thereafter, the Coinbase exchange resigned from the Blockchain Association, citing board decisions.

What is known about the Blockchain Association? The association was created by the Financial Commission, an independent private organization that acts as a claims resolution body for financial services. The purpose of the creation was to promote aspects of self-regulation in the field of digital asset trading by combining crypto exchanges and financial companies. The Blockchain Association is joined by crypto platforms that adhere to high business standards. It has recently expanded its activities to the state of New York as part of lobbying for cryptocurrency regulation with US government agencies.

What had happened before? In 2019, Binance was banned from operating in the United States, after which it opened an arm of Binance.US to comply with local laws. In September 2021, Binance CEO and founder Changpeng Zhao announced that Binance.US intends to conduct an initial public offering of shares in 2024.

In early April, Binance.US reported a seed round in which the arm of the largest cryptocurrency exchange by trading volume raised $200 million from large funds and investors.

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