The ongoing regulatory pressure has created a tough task for the banking partners of Binance.US.
Binance.US has told its customers that they may not be able to buy crypto with their US dollars from June 13. Thursday’s announcement comes after the Securities and Exchange Commission (seconds, filed The lawsuit against the exchange and its founder, Changpeng Zhao (CZ) on Monday.
SEC insists on binance Violated the securities laws of the country. The exchange, on the other hand, says the regulator is only leveling “unwarranted civil claims” against its business.
official Announcement reads in part:
“Today we are suspending USD deposits and notifying customers that our banking partners are preparing to freeze fiat (USD) withdrawal channels until June 13, 2023.”
Binance.US Will Lose Access to the US Banking System
As it stands, the SEC is looking to freeze the assets of Binance.US. However, interestingly, the regulator has also taken a view on the customers and asked the court to grant a temporary stay order. This is to allow the exchange to process withdrawal requests during this time.
Nevertheless, regulatory pressure has created a difficult task for the banking partners of Binance.US. Therefore, the so-called banking partners “indicated their intention to stop USD fiat channels as early as next week”.
Nonetheless, Binance encourages its customers to take appropriate action with their USD. It also assures them that their funds are safe. That is, even if they are unable to withdraw their money by the due date, they can still convert it into a stablecoin such as Tether (usdt), and then take it back. After that, they can convert the stablecoin back into dollars elsewhere.
The exchange said it had already disabled customers’ ability to buy and deposit US dollars.
Is the transition in progress?
The proactive measures taken by Binance.US to prevent customers from buying and depositing US dollars may have cost it its position as a crypto-only exchange. But this can happen till the matter is cleared with the SEC.
However, for the time being, Binance.US has taken other measures to ensure that its US-focused platform continues to operate without banks. There’s also an exchange for announced De-listing ten different trading pairs in light of ongoing litigation.
Maiowa is a crypto enthusiast/writer whose conversational character is quite evident in his writing style. He firmly believes in the potential of digital assets and takes every opportunity to reiterate this. He is also an avid reader, a researcher, an astute speaker and a budding entrepreneur. However, away from crypto, Mayowa’s distractions include discussing soccer or world politics.
Bitcoin Crypto Related Post