Bitrabo Editorial
Binance US continues to receive bad news. The US Securities and Exchange Commission (SEC) recently filed a lawsuit against the US branch of Binance, which has now led to the suspension of USD deposits on the exchange.
Binance US has also notified its customers that its banking partners may suspend fiat (USD) withdrawal services as soon as June 13. Customers using the US exchange (not including the international trading platform) will be unable to withdraw US dollars from that day onward.
The exchange urges its clients and its employees to take appropriate action with their USD. The message also points out that the SEC is using “extremely aggressive and intimidating tactics” in its “ideological campaign” against the US digital asset industry. Binance.US is amongst those affected by these tactics that have disrupted operations of its business partners.
The SEC has apparently coerced Binance’s banking partners to cease cooperation to avoid being a regulatory target; thus, Binance US is missing a crucial function, the fiat on/off ramp, and only became a cryptocurrency exchange.
“Our priority has always been our customers… we maintain 1:1 reserves for all customer assets… however, Binance US still retains all other exchange features. Trading, staking, deposits and withdrawals in cryptocurrency will remain fully operational.”
Meanwhile, the BNB price seems unaffected by the news, currently trading at $260.4.
While the Binance US team assures customers that it will ensure a thriving digital asset market in America and will “vigorously defend against the SEC’s unfounded attacks,” the regulator currently holds the upper hand as Binance’s decision was because of SEC intimidation tactics used in the banking sector. Adam Cochran, partner at venture capital firm Cinneamhain Ventures (CEHV), also questions the US regulator’s motives in influencing USD transfers.
Featured image from Investor Junkie, chart from TradingView.com