Payment services and banks acting as partners of Binance.US informed the administration of the site about their intention to stop its service in fiat US currency from June 13th. In this regard, the crypto exchange decided to disable the ability for users to make dollar deposits and exchange any assets for dollars.
Image source: binance.com
The administration of Binance.US announced the termination of accepting deposits in dollars the day before in Twitter, accusing the U.S. Securities and Exchange Commission (SEC) of filing “an unsubstantiated civil lawsuit against our business.” Earlier, the agency actually sued Binance and its owner Changpeng Zhao, stating that the platform and the businessman violated US securities laws.
According to the regulator, the international and American Binance placed client and own funds in a single fund, and financial flows passed through the accounts of the company personally owned by Zhao. In this regard, the SEC demanded a freeze on Binance’s US assets, which would be tantamount to a decision that the platform has now made itself.
In a statement, the crypto exchange emphasized that it has a 1:1 reserve for all client assets, and all possible delays in withdrawing funds are purely technical in nature. The refusal to work with fiat dollars will have a minimal impact on Binance.US clients – they can exchange assets for stablecoins like Tether and exchange them on any other platform. But “signals” from payment services and partner banks indicate that Binance is now regarded as a high-risk client, and the SEC’s actions are too important to ignore.
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