Continued regulatory pressure has created a difficult working ground for Binance.US banking partners.
Binance.US informed its customers that they may not be able to buy crypto with their US dollars starting June 13. Thursday’s announcement follows the Securities and Exchange Commission (SECOND) deposit a lawsuit against the stock exchange and its founder Changpeng Zhao (CZ) Monday.
SEC insists that Binance had violated the securities laws of the country. The exchange, on the other hand, says the regulator is merely leveling “unwarranted civil claims” against its company.
The official announcement reads in part:
“Today, we are suspending USD deposits and informing customers that our banking partners are preparing to suspend fiat (USD) withdrawal channels as of June 13, 2023.”
Binance.US will lose access to the US banking system
As it stands, the SEC is looking to freeze Binance.US assets. Interestingly, however, the regulator also considered customers and asked the court to approve a temporary restraining order. This allows the exchange to continue processing withdrawal requests in the meantime.
Despite this, regulatory pressure has created a difficult working ground for Binance.US banking partners. Hence why the so-called banking partners “have signaled their intention to suspend USD fiat channels”, as early as next week.
Nevertheless, Binance encouraged its customers to take appropriate action with their USD. It also assures them that their funds are safe. That is, even if they are unable to withdraw their money on the due date, they could still convert it to a stablecoin such as Tether (USDT), then remove it. Afterward, they can then convert the stablecoin back into dollars elsewhere.
The exchange said it preemptively disabled customers’ ability to buy and deposit US dollars.
Transition in progress?
Proactive measures taken by Binance.US to prevent customers from buying and depositing US dollars may have positioned it as a crypto-only exchange. But that may only be until his case with the SEC is cleared up.
Currently, however, Binance.US has taken other steps to ensure that its US-centric platform continues to function even without the banks. To this end, the exchange also announcement the delisting of ten different trading pairs in light of the ongoing lawsuit.
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