A digital coin backed by Binance.
Binance has suffered its worst day for customer withdrawals since December after US regulators cracked down on a digital coin endorsed by the cryptocurrency exchange.
The business endured more than $830m (£680m) of outflows on Monday, according to the data firm Nansen, the biggest since late last year when customers were spooked by concerns about its financial reserves.
The withdrawals came after US regulators ordered the cryptocurrency firm Paxos to stop issuing Binance USD, a digital coin backed by Binance. This caused a domino effect, with customers withdrawing their funds from Binance en masse.
Binance is still reeling from the news, and it is unclear how this will impact their business in the long term.
Paxos, a lesser-known cryptocurrency exchange, has been thrust into the spotlight after Binance, the world’s biggest cryptocurrency exchange, endorsed the branded coin and began holding a significant portion of its assets in it.
Binance’s chief executive Changpeng Zhao – known as CZ – has said that customer funds are safe, and Paxos has said it has sufficient dollars in reserve to let existing owners redeem their holdings for dollars.
Scrutiny of Binance’s financial position has been growing since the collapse of rival exchange FTX in November. Binance appointed a new chief financial officer in December.
Why did Mazars remove a report on Binance from its website? What implications does this have for Binance and the cryptocurrency industry as a whole? These are just a few of the questions being raised in the wake of this recent development.
Binance, the world’s largest cryptocurrency exchange, has been facing some difficult times recently. First, their partner bank tightened restrictions on cryptocurrency transfers, which led to Binance blocking users from withdrawing dollars to US bank accounts. Now, Mazars has removed a report on Binance from its website, raising even more questions about the future of the exchange and the cryptocurrency industry as a whole.