Binance US CEO Brooks resigns just three months after taking office

Aug 6 (Reuters) – Brian Brooks, managing director of the U.S. arm of the global cryptocurrency exchange Binance, said on Friday he resigned just three months after taking office.

Former US banking regulator and cryptocurrency enthusiast steps down as regulators in Hong Kong, Britain, Germany, Japan, Italy and Thailand have cracked down on Binance over concerns about investor protection. Watchdogs around the world are also concerned that the cryptocurrency boom is promoting money laundering and increasing systemic risk.

“I am letting you know that I have resigned as CEO of @BinanceUS,” Brooks wrote on Twitter. “Despite the differences on the strategic direction, I wish my former colleagues every success. New and exciting things to come!”

Led by Canadian Changpeng Zhao, Binance offers a wide range of services globally, from spot trading and crypto derivatives to tokenized versions of stocks, as well as its own cryptocurrency, Binance Coin.

“Brian’s work for Binance.US has been invaluable and we hope he will continue to be an integral part of the growth of the crypto industry, advocating for regulations that advance our industry,” Zhao tweeted on Friday. .

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

The UK financial watchdog has banned Binance from carrying out regulated activities in the country. The Japanese regulator said Binance was operating there illegally and the German watchdog warned it faced fines for offering tokens linked to stocks.

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

Responding to regulatory pressure, Binance has limited some services on betting on cryptocurrencies, highly leveraged positions, and trading with equity-linked tokens, and has pledged to strengthen its compliance staff. Read more

Brooks, who was acting US currency controller from May 2020 to January 2021, joined Binance US as managing director in early May. Prior to joining the regulator, Brooks was Legal Director of Coinbase Global. During his tenure as Interim Controller, Brooks led efforts to clarify regulations for stablecoins and digital asset custody.

Reporting by Noor Zainab Hussain in Bengaluru and Michelle Price in Washington; Editing by Maju Samuel and David Gregorio

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