Executives Flee Binance US as Regulatory Pressures Mount – Breaking Update


Binance US, the American arm of the well-known cryptocurrency exchange, has seen a series of high-profile departures recently. Sidney Majalya, the Chief Risk Officer, and Krishna Juvvadi, the head of legal, resigned today, following the resignation of the firm’s President and CEO, Brian Shroder. This has caused speculation that a ripple effect of high-level exits may be in effect.

The resignations come as the U.S. Securities and Exchange Commission (SEC) has increased its scrutiny of Binance US. The SEC filed a lawsuit against Binance US and its CEO earlier this year, claiming they operated an unauthorized trading platform in the United States. Juvvadi, who joined the firm in May 2022, and Majalya, who took on the role of CRO in December 2021, were two of the main liaisons between Binance US and the SEC.

Commenting on the departures, Binance US said, “The SEC’s aggressive attempts to cripple our industry and the resulting impacts on our business have real-world consequences for American jobs and innovation, and this is an unfortunate example of that.” Neither Juvvadi nor Majalya have commented on their reasons for leaving.

Binance is not only facing legal action from the SEC and the Commodity Futures Trading Commission (CFTC) in the U.S., but internationally as well. The Australian Securities and Investments Commission (ASIC) inspected Binance’s Australian offices in July, focusing on its now-closed local derivatives operations. In April, Binance Australia’s derivatives license was revoked. This was followed by Binance temporarily suspending PayID AUD deposits due to issues with a third-party payment provider in May. Regulatory bodies in Europe, such as Belgium’s FSMA and Germany’s Bafin, have also added to the company’s challenges. FSMA ordered Binance to cease all offers of virtual currency services in Belgium in June, while Bafin Bafin rejected Binance’s cryptocurrency custody license application in July.

Binance is currently the largest cryptocurrency exchange in the world, with a daily trading volume of close to $4.6 billion. However, Binance US has seen its market share drop significantly, particularly in the United States. Data from Reuters reveals that its U.S. market share went from over 22% in April to just around 0.9% as of June 26. Its global market share has also fallen from 2.39% to just 0.6%.

The challenges that Binance US is facing, both domestically and internationally, have put the company at a pivotal crossroads. Whether Binance US can navigate the ever-changing regulatory landscape and regain its lost market share will be a determining factor of its future viability. For now, stakeholders are watching closely.

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