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Hedge Funds Abandoning Binance Amid Heightened Regulatory Scrutiny

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Fri, 07/23/2021 - 19:23
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Alex Dovbnya
Hedge funds are scaling down exposure to the Binance exchange amid a global regulatory clampdown
Hedge Funds Abandoning Binance Amid Heightened Regulatory Scrutiny
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Some hedge funds have soured on Binance due to intense regulatory scrutiny the exchange is currently facing, Financial Times reports.   

Particularly, Tyr Capital and ARK36 have both dramatically trimmed their positions on the leading cryptocurrency trading platform.  

Tyr Capital co-founder Ed Hindi claims that the move is meant to shield investors from “unknown unknowns” amid a global regulatory crackdown on the exchange:

Our primary concern is protecting our investors from unknown unknowns that may pop out of the current multi-jurisdictional regulatory clampdown on the exchange.

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As reported by U.Today, Binance has become the target of regulatory scrutiny in Italy, Lithuania, Malta, the U.K., Hong Kong, Japan, Canada, Poland, the Cayman Islands, and Thailand.  

Binance, however, denies that the recent developments have deterred institutions from using the exchange.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.