Binance US, the U.S. affiliate of Binance, has announced the suspension of dollar deposits after the Securities and Exchange Commission (SEC) sought to freeze its assets. Customers have until Tuesday to withdraw their funds. Learn more about the latest developments.
Introduction:
Binance US, the American counterpart of Binance, has made an important announcement in response to the recent actions taken by the U.S. Securities and Exchange Commission (SEC). The company has decided to halt dollar deposits and has set a deadline for customers to withdraw their funds. This move comes after the SEC filed a lawsuit against Binance, its CEO Changpeng Zhao, and the operator of Binance.
US regulatory scrutiny on the cryptocurrency industry has intensified, with major U.S. exchange Coinbase also facing legal action from the SEC.
1. Binance.US Suspends Dollar Deposits:
Binance.US, the independent partner of Binance, revealed in a tweet on Thursday that it would no longer accept dollar deposits. The company cited its transition to becoming a "exchange" as the reason behind this decision. Binance.US urged its customers to withdraw their dollar funds by a specified deadline. This action comes as the SEC's civil charges against Binance are being disputed, with the company asserting that the allegations are unfounded and vowing to defend itself.
2. SEC Allegations and Freezing of Assets:
The SEC has leveled 13 charges against Binance, accusing the company of engaging in a "web of deception." The charges include inflating trading volumes, misusing customer funds, and failing to install measures to restrict U.S. customers from accessing its platform. In response, the SEC has requested a federal court to freeze Binance's U.S. assets. Binance.US, but, views this motion as unwarranted and claims to have addressed the SEC's concerns about the safety of customer assets.
3. Lack of Reassurance and Control Over Customer Assets:
The SEC has expressed skepticism about the control and ownership of customer assets held by Binance US. It states that the assets may be controlled by Binance or Changpeng Zhao himself, who has expressed his intention to avoid compliance with U.S. law. The SEC alleges that Binance and Zhao have had unrestricted control over Binance.US's assets without proper oversight or security measures in place. Binance has yet to respond to requests for comment on the matter.
4. Impact on Binance US and Crypto Market:
Binance US's decision to halt dollar deposits is seen as a significant setback for the exchange, as it prevents Americans from utilizing Binance's global platform. The inability to offer USD trading services in the region poses an existential threat to Binance.US, according to industry experts. Despite these developments, the news has had minimal impact on cryptocurrency prices, with bitcoin trading up and Binance's BNB token experiencing a minor decline.
Conclusion:
The SEC's lawsuit against Binance and its after impact on BinanceUS has led to the suspension of dollar deposits on the platform. Binance.US aims to transition into a exchange, citing the SEC's civil charges as unjustified. The situation highlights the increasing regulatory scrutiny faced by the cryptocurrency industry in the United States. As the case unfolds, the industry awaits further updates on Binance's response and the implications for the broader market.
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