Binance US, the American arm of Binance, one of the world’s largest cryptocurrency exchanges, has halted dollar deposits on its website in response to recent regulatory moves. This is not surprising given that US financial officials have shown backing for freezing Binance’s assets.
Binance US has said that its banking partners are planning to close down dollar withdrawal routes as early as June 13. This is a step toward becoming a cryptocurrency-only exchange. The platform decided to not reveal the names of its banking partners.
The Securities and Exchange Commission (SEC) has sued Binance and its CEO, Changpeng Zhao. The SEC stated that this was related to a number of charges. Many of these include boosting trade volumes artificially, diverting customer funds, and even deceiving investors.
As a result, Binance.US is discontinuing accepting dollar deposits but will continue to provide cryptocurrency-related services. This new change may cause some investors concern, but such steps were expected after restrictions.
🇺🇸💰 #Binance US to halt dollar deposits after SEC crackdown.
— Walletor (@walletorapp) June 9, 2023
The news had little effect on the crypto market, which did not experience much market volatility. Only slight price drops were observed in cryptocurrencies such as Bitcoin (BTC). Binance’s native coin, BNB, too suffered a minor price decline.
Binance US has encountered numerous challenges in obtaining financial partners. Despite these challenges, the exchange remains committed to its customers and the cryptocurrency business.
Binance US has blasted the SEC for its permissive attitude toward cryptocurrencies. They also stated that they are prepared to defend their cause, as well as the interests of their customers and the industry.
While market reaction to these events has been subdued thus far, it is evident that the cryptocurrency field is developing. The new steps only emphasize the significance of new crypto projects sticking to legislation.
As the scenario continues to evolve rapidly, industry participants must keep a careful eye on it and remain alert. Legal proceedings such as this one are critical in controlling the blockchain business. They may even have the potential to totally transform the crypto sector as a whole.