Binance US said it has suspended dollar deposits on the platform, following increased regulatory pressure from the SEC. The discontinuation of withdrawals will also be imminent. The American branch of Binance is keen to stand up to the American regulator and protect its customers. Nevertheless, it will continue to offer services related to cryptos.
Binance US: A response to SEC pressure
The decision to suspend fiat deposits is a response to the war against the Securities and Exchange Commission (SEC). The US regulator has indeed sued Binance and Changpeng Zhao, boss of the company, for alleged offers and sales of unregistered securities. According to a tweet from Binance US, the SEC is starting to use aggressive and intimidating tactics against the US digital asset industry.
After suspending US dollar deposits, the platform also plans to halt USD withdrawals from June 13. Binance says the move is to protect customers. The company therefore urges customers to take appropriate action with their USD. It should be noted, however, that the battle between the two entities has not yet impacted the global activities of the crypto-exchange.
Cryptocurrency services remain operational
Binance US has also indicated that it will be delisting USD trading pairs starting next week. But the platform continues to support stablecoin pairs. By temporarily switching to “crypto only” mode, cryptocurrency services remain functional on the platform. Clients can continue crypto trading, staking, deposits and withdrawals.
The platform clarified that it maintains 1:1 reserves for all client assets. She adds that any downtime in processing withdrawals may be the result of high volumes and weekend bank closures. The upheavals in exchanges, like Binance, are only at their beginning because the SEC is not ready to stop. Recently, she requested that funds hosted on Binance US be frozen.
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