CEO of US cryptocurrency broker Binance resigns after 3 months in office

Brian Brooks, chief executive of the US arm of the Binance cryptocurrency exchange, said on Friday that he had resigned just three months after taking office.

Binance virtual currency representation.  8/6/2021.  REUTERS/Ruvic data

Binance virtual currency representation. 8/6/2021. REUTERS/Ruvic data

Photo: Reuters

A former US bank regulator and encryption enthusiast leaves as regulators in Hong Kong, Britain, Germany, Japan, Italy and Thailand crack down on Binance over investor protection concerns. Regulators also fear the cryptocurrency boom is helping money laundering and increasing systemic risks.

“Informing everyone that I’ve resigned as CEO of @BinanceUS,” Brooks wrote on Twitter. “Despite the differences in strategic direction, I wish my former colleagues every success. Exciting new things to come!”

Led by Canadian Changpeng Zhao, Binance offers cryptocurrency services and trading in derivatives and tokenized versions of shares, in addition to its cryptocurrency, Binance Coin.

Brooks did not respond to requests for further comment. A Binance spokesman declined to comment.

Britain’s financial regulator prevented Binance from having regulated activities in the country. Japan’s regulator said Binance was operating there illegally, and Germany’s regulator warned that it runs the risk of fines for offering stock-linked tokens.

In the US, Binance is also being investigated by the Department of Justice, the Commodity Futures Trading Commission and tax authorities, reported Bloomberg News.

Responding to regulatory pressure, Binance has restricted some cryptocurrency betting services, highly leveraged positions and equity-linked token trading, and has committed to strengthening its compliance team.

((Translation of the São Paulo Newsroom))