Following the SEC lawsuit earlier this week, Binance.US has been in major trouble and the latest development is that it will soon be cutting with its banking partners in America.
In its recent tweet, Binance.US shared the email copy which shows that its banking and payment partners have shown the intent to pause US Dollar fiat channels next week onwards from June 13. Binance.US said that starting today, they will start suspending USD deposits and other recurring buy orders. On the other hand, it plans for its transition to a crypto-only exchange very soon.
In its post, Binance.US blamed the SEC for using “extremely aggressive and intimidating tactics” in its ideological campaign against America’s crypto industry. Binance said that its decision to suspend USD will help them protect their customers against the high-ended regulatory action. In its Twitter post, the exchange writes:
“Our priority is, and has always been, our customers. We are taking these proactive steps as we–for a time–transition to a crypto-only exchange. To be clear, we maintain 1:1 reserves for all customer assets. Any downtime in processing withdrawals may be the result of elevated volumes and weekend bank closures. Moreover, trading, staking, deposits and withdrawals in crypto remain fully operational”.
The SEC lawsuit on Binance.US has put the exchange under the spot. Furthermore, the federal securities regulator has demanded an emergency order to freeze the assets of Binance.US citing risks of dissipation. things are escalating faster than anyone expected, and certainly not in favor of Binance.
Apart from the US market, Binance also faced trouble in Australia. Last month, following a problem against the exchange by the Australian Securities and Investments Commission (ASIC) in April 2023, Binance decided to suspend all AUD deposits. This happened as the exchange lost several of its banking partners in Australia.
It remains to be seen whether these actions could have a ripple effect over other global jurisdictions where Binance operates. It could also mean a major liquidity crunch considering Binance is the largest crypto trading platform globally.
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