Binance.US halts USD deposits after SEC complaint
Law enforcement has been closely monitoring the cryptocurrency industry. The most recent legal action brought by the Securities and Exchange Commission against Binance and Coinbase has had a significant effect on the cryptocurrency market. The largest exchange in the world's U.S. division, Binance.US, has decided to halt U.S. dollar [USD] deposits due to the continuing legal dispute.
In a statement, Binance.US stated that as of June 13, 2023, none of its financial partners would process payments for use in the United States. The suspension of USD deposits will begin on June 9, according to Binance.US. The following week will see the delisting of USD trading pairs. The exchange will still support trading pairs that involve USDT, though. Additionally, users of Binance.US have been made aware that any outstanding USD balances on the exchange may be converted into a stablecoin and then withdrawn on-chain.
Other services like trading, staking, deposits, and withdrawals will be available in full, it should be mentioned. However, Binance.US has noted that rising volumes and weekend bank closures may be contributing causes in order to resolve any withdrawal delays.
The exchange has stated that it intends to switch to being a cryptocurrency-only platform while guaranteeing users that the ratio of their assets would remain at 1:1. That is, until it finds financial partners who are more reliable.
Why did Binance.US act in this way?
It is unquestionably harmful to suspend USD deposits while conducting business in the US for a variety of reasons. Explaining the reasoning for this decision, Binance.US tweeted:
Binance.US decided to remove ten trading pairs from its platform earlier this week. Eight Bitcoin [BTC] pairings and two Binance USD [BUSD] pairs made up the delisted pairs. The change took place at the same time as its OTC Trading Portal services were momentarily suspended.
Further discussing the future course of action, the exchange wrote,
“While we remain open to a productive compromise that enables a thriving digital asset marketplace in America, Binance.US will continue to vigorously defend ourselves, our customers, and the industry against the meritless attacks of the SEC.”