Binance US, the American subsidiary of crypto giant Binance, has had its bid to acquire $1 billion in assets from digital asset platform Voyager blocked by US regulators. The move is a setback for Binance, which had hoped to use the acquisition to expand its presence in the United States and take advantage of Voyager’s strong relationships with retail brokerages. In this blog post, we will explore why US regulators blocked Binance US’s acquisition, what implications it could have for the crypto industry, and how Binance is responding. Read on to learn more about this latest development in the world of cryptocurrency.
Who is Binance?
Binance US is a digital asset exchange platform created by Binance and registered with the U.S. Securities and Exchange Commission (SEC). The platform allows users to buy, sell, and trade digital assets such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Binance Coin (BNB).
Binance US is available to residents of the United States and its territories. The platform is accessible through a web browser or mobile app.
In September 2019, Binance announced that it would be acquiring Voyager, a digital asset broker-dealer licensed by the SEC. The acquisition would have allowed Binance US to offer crypto-asset custody, commission-free trading, and other services to its users.
However, in December 2019, the SEC blocked the proposed acquisition, citing concerns about Binance’s ownership structure and ability to comply with U.S. regulations.
Who is Voyager?
Voyager is a digital asset broker and exchange founded in 2018. The company allows users to buy, sell, and trade digital assets such as Bitcoin, Ethereum, Litecoin, and more. Voyager also offers a mobile app that allows users to trade on the go.
In 2019, Binance US, a subsidiary of Binance, announced its intention to acquire Voyager. However, the US Securities and Exchange Commission (SEC) has since blocked the deal, citing concerns about the regulatory compliance of both companies.
What assets did Binance want to acquire?
Binance, one of the world’s largest cryptocurrency exchanges by trading volume, was looking to acquire digital asset platform Voyager and its associated assets for a reported $3 billion. The deal would have seen Binance expand its presence in the United States, where it currently does not operate an exchange.
The acquisition would have given Binance control of Voyager’s trading platform, which is available in 45 states and allows users to trade cryptocurrencies on more than 50 exchanges. In addition, Binance would have acquired fiat-to-crypto gateway Crypto.com and digital asset wallet Edge.
The deal was first reported by Bloomberg in June 2019, but it was not officially announced until September 2019. At the time, Binance CEO Changpeng Zhao said that the acquisition would help the company “accelerate [its] global expansion to provide more services to our community.”
However, the deal has now been blocked by U.S. regulators on national security grounds. The Committee on Foreign Investment in the United States (CFIUS) has determined that the acquisition of Voyager and its associated assets by Binance poses a national security risk.
Why did the regulators block the acquisition?
The U.S. Securities and Exchange Commission (SEC) has blocked Binance US’s $1 billion acquisition of Voyager Assets. The SEC says that the deal would have given Binance an “undue advantage” in the digital asset trading space.
Binance US is a digital asset exchange that is registered with the SEC. The company had planned to acquire Voyager Assets, a digital asset manager, in a deal that would have been worth $1 billion. However, the SEC has now stepped in and blocked the deal.
In a statement, the SEC said that the deal would have given Binance “an undue advantage in the digital asset trading space.” The SEC also said that the deal would have been “detrimental” to investors and competition in the space.
The SEC’s decision to block the deal comes as a surprise to many in the industry, as Binance is one of the most well-known and respected names in the digital asset trading space. However, it seems that the SEC is concerned about potential conflicts of interest that could arise from the deal, and has decided to block it for now.
What will happen next?
It is unclear what will happen next, as both Binance and Voyager have not released any official statements on the matter. However, it is likely that Binance will continue to try and acquire Voyager, either through another offer or by seeking regulatory approval.
Conclusion
In conclusion, US regulators have blocked Binance US’s proposed $1 billion acquisition of Voyager assets. The decision was made in order to protect public investors from potential conflicts of interest in the cryptocurrency industry. While this is bad news for Binance and Voyager, it offers a reminder of how important regulatory compliance is when conducting business in the crypto space. We expect that both companies will continue looking for other ways to expand their services and grow their market share despite this setback.
