Binance US halts deposits in USD, says allegations made by SEC unjustified
On Thursday, Binance.US revealed that it is putting a halt on US dollar deposits, days after the US regulators sued Binance and its CEO, CZ.
Highlights
- Binance.US has notified its customers that its banking partners are preparing to pause USD withdrawal channels by 13 June
- It has warned that owing to huge volumes, withdrawals may take longer than usual
Following the SEC's (Securities Exchange Commission) crackdown on Binance, the largest crypto trading platform across the globe, its American arm, Binance.US, announced on Thursday that it is suspending USD deposits, i.e., it would no longer allow customers to trade on its platform using US dollars. The exchange has said that this move comes as it is taking “proactive steps” in its transition to a crypto-only exchange for the time being.
Customers urged to withdraw USD by 13 June
The crypto trading platform has encouraged its customers to "withdraw their USD" by 13 June but warned that owing to huge volumes, withdrawals may take longer than usual. Trading, staking, deposits, and withdrawals in cryptocurrencies would remain fully operational, states the exchange.
Moreover, Binance.US has emphasised that customer funds were "safe, secure, and available", as per reports.
Accusations made by SEC unreasonable, says Binance.US
In an email to its customers, Binance.US stated, “The allegations made by SEC are unjustified. We will continue to vigorously defend ourselves.” The exchange further mentioned that it has created challenges between the exchange and its banking partners.
Here, it must be mentioned that the US financial watchdog, on Monday, filed for a temporary restraining order to freeze certain assets pertaining to Binance.US. Interestingly, the financial regulator has also accused Binance of directing funds worth $12 billion to firms controlled by its billionaire CEO, Changpeng (CZ) Zhao, a claim that both Binance and CZ have denied.
Further, a day later, the SEC sued Coinbase, a renowned cryptocurrency platform based in the US.
Interestingly, these developments mark a dramatic upsurge of a crackdown on the cryptoverse by the US regulators, following the FTX debacle last year.
Meanwhile, Binance’s native crypto token, BNB, decreased by 0.96 percent to $260.48, at the time of writing this article, extending a recent period of underperformance of wider digital-asset markets.
