Ongoing regulatory pressure creates a difficult situation for Binance.US’ banking partners.
Binance.US has informed customers that they may no longer be able to buy cryptocurrencies with US dollars from June 13th. Thursday’s announcement follows a lawsuit filed by the Securities and Exchange Commission (SEC) against the exchange and its founder Changpeng Zhao (CZ). ) on monday.
The SEC alleges that Binance violated the country’s securities laws. The exchange, on the other hand, claims regulators are merely leveling “unfair civil claims” against its own businesses.
official announcement Read in part:
“Today, we have suspended US dollar deposits and informed our customers that our partner banks are preparing to suspend fiat currency (US dollar) withdrawal channels as early as June 13, 2023. will notify you.”
Binance.US Loses Access to US Banking System
As it stands, the SEC is considering freezing the assets of Binance.US. Interestingly, however, the regulator also considered customers and asked the courts to approve a temporary restraining order. This is to allow the exchange to continue processing withdrawal requests in the meantime.
Nevertheless, regulatory pressure has created a difficult situation for Binance.US’ banking partners. Hence, the so-called banking partners have “indicated their intention to suspend the US dollar fiat channel” as early as next week.
Nevertheless, Binance encouraged its customers to behave appropriately with USD. It also ensures that your funds are safe. So even if you can’t withdraw your money by the due date, you can convert it to a stablecoin like Tether (USDT) and withdraw it. The stablecoin may then be converted back to dollars elsewhere.
The exchange announced that it has preemptively disabled the ability for customers to buy and deposit USD.
in transition?
The aggressive actions taken by Binance.US to discourage customers from purchasing and depositing USD may have positioned Binance.US as a dedicated cryptocurrency exchange. But that may only be until the case with the SEC is resolved.
But now Binance.US has taken another step to ensure that the US-focused platform continues to function without the bank. To this end, the exchange has also announced the delisting of 10 different trading pairs in view of the ongoing litigation.
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Mayowa is a cryptocurrency enthusiast/writer whose conversational personality is very evident in his writing style. He is a strong believer in the potential of digital assets and repeats this at every opportunity. He is a reader, researcher, keen speaker and budding entrepreneur. But apart from cryptocurrencies, Mayowa’s fancy pastimes include things like football and discussing world politics.
