Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Binance.US halts USD trading amid regulatory crackdown

Published 09/06/2023, 04:35 pm
Updated 09/06/2023, 04:35 pm
© Reuters

Investing.com - Binance.US, the American subsidiary of the prominent global cryptocurrency exchange, recently announced that it would cease facilitating trading in U.S. dollars due to severed ties with its banking partners. This development is a result of increased scrutiny from federal regulators.

The termination of dollar-based transactions significantly impacts Binance.US's ability to allow users to convert traditional currency into digital assets like Bitcoin or Ether. In response, the company has decided to transition into a crypto-only exchange.

According to Binance.US, recent communications from their banking partners indicated an unwillingness to continue supporting dollar movements for the platform. This decision follows legal action by the Securities and Exchange Commission (SEC), which accused both Binance and CEO Changpeng Zhao of improper handling of customer funds and providing false information to regulatory authorities.

Furthermore, the SEC sought permission from a Washington-based federal judge to freeze assets linked with U.S.-based clients using Binance services as they cited years-long violation concerns surrounding the defendants' conduct.

As yet, representatives for Binance have not commented on these developments publicly. The broader cryptocurrency industry has faced mounting pressure since November when problems arose following the FTX exchange's collapse—an event that sparked widespread turmoil across various platforms.

In addition to pursuing legal action against Binance earlier this week, SEC filed another case against Coinbase—the largest American crypto exchange—further intensifying ongoing struggles within this sector. While some companies are taking steps towards challenging such crackdowns others are contemplating leaving US markets entirely.

Banning all deposits in U.S dollars while urging customers holding any funds within their accounts until June 13th; In a recent statement addressing client concerns amid aggressive tactics employed by SEC officials., However, Binance.us reassures them that their assets are safeguarded and backed by 1:1 reserves, ensuring the safety, security, and availability of customer funds.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.