Hedge funds are scaling down exposure to the Binance exchange amid a global regulatory clampdown
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.
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.