Binance.US, the United States-based unit of cryptocurrency exchange Binance, has recently suspended dollar withdrawals from its platform. This move comes after the ongoing legal battle with the US Securities and Exchange Commission (SEC).
Binance.US Adjusts Services
According to a Reuters report, Binance.US customers can no longer directly withdraw US dollars from their accounts. Instead, they must convert their dollar funds to stablecoins or other digital assets, which can be withdrawn.
This move effectively transitions Binance.US into a crypto-only exchange, restricting the deposit and withdrawal of fiat currency. In early June, Binance.US suspended dollar deposits following the SEC’s request to freeze its assets.
The regulatory agency filed a lawsuit against Binance and its CEO, Changpeng Zhao, accusing them of deceptive practices, market manipulation, and misappropriation of customer funds.
Moreover, the SEC alleged that Binance had engaged in a “web of deception,” including artificially inflating trading volumes.
Per the report, Binance.US’s decision to halt dollar withdrawals was prompted by its banking partners, indicating a reduction in business activities amid the regulatory scrutiny.
The SEC’s aggressive approach and allegations against the largest exchange in the world have created challenges for the company’s relationship with financial institutions.
Closer To Potential Settlement With SEC?
Binance.US has been actively defending itself against the SEC’s allegations. Initially, the SEC sought a temporary restraining order (TRO) and asset freeze, which the court did not grant.
Instead, the company reached a court-ordered agreement with the SEC, allowing it to continue its normal operations. The exchange highlighted that no evidence has been presented by the SEC regarding the misuse of customer assets.
The ongoing legal battle and regulatory challenges have undoubtedly affected Binance.US’s reputation and business operations. However, the exchange remains resolute in defending itself against what it perceives as unjustified allegations and overreach by the SEC.
The exchange’s decision to halt dollar withdrawals amid the SEC lawsuit underscores the intensifying regulatory scrutiny faced by cryptocurrency exchanges.
The ongoing legal battle will likely shape the future regulatory landscape for the industry. As the case unfolds, market participants and industry observers keenly await developments that could potentially impact cryptocurrency exchanges’ operations and compliance standards in the United States.
The outcome of this legal dispute will have broader implications for the crypto industry, as it highlights the regulatory environment and potential hurdles faced by cryptocurrency exchanges operating in the United States.
As of the time of writing, the price of Binance Coin (BNB) stands at $211, having briefly reached a peak of $218 on Monday. Over the past 24 hours, the token has experienced a 1.9% decrease in value. Furthermore, BNB has seen a significant decline of 22% year-to-date.
Featured image from Shutterstock, chart from TradingView.com