Binance will suspend the use of dollars in the US due to the SEC lawsuit

2023-06-09 23:53:00

Suvashree Ghosh, Yueqi Yang and Emily Nicolle

Hoy 20:53

The Binance.US cryptocurrency exchange is in deep chaosas banking partners prepare to terminate support, liquidity dries up and traders withdraw tokens from the platform as US regulators clamp down on the company and its owner.

In an email sent to clients late on Thursday, Binance.US informed users that its banking and payment partners had indicated their intention to suspend support for the dollar channels of the stock market as of June 13. This means that Binance.US will not be able to process dollar deposits or withdrawals, forcing the platform to change course and bet on cryptocurrencies.

Binance.US client assets amount to more than US$2.2 billion, according to a memo from the United States Securities and Exchange Commission (SEC).

What can be bought with cryptocurrencies and how to do it

Earlier this week, the SEC sued the exchange along with Binance Holdings Ltd., operator of the crypto exchange, much larger and which he claims is separate from US activity. Both are owned primarily by Changpeng “CZ” Zhao, the CEO of, who was also sued. Binance and Zhao have disputed the allegations.

Although Binance.US is supposed to be the only way Americans can trade the company, its relative size means that any changes will barely affect Binance’s increased control of the broader cryptocurrency market, where it processes roughly 54% of the cryptocurrency market. monthly volume of operations in the sector. Binance.US posted about $6 billion in monthly volume in May, according to CCData, versus $212 billion for

The decline of the American platform had already begun following an earlier lawsuit against Binance by the Commodity Futures Trading Commission in March, and its May volumes were around 61% lower than the previous month, according to CCData.

Meanwhile, stablecoin reserves have more than halved in the past five days, according to CryptoQuant. Las stablecoins, which are digital tokens typically pegged to the value of a fiat currency such as the dollar, they are a vital means of storing value for crypto operators.

Binance.US’s ether reserves, the second largest cryptocurrency by market value, are nearing zero, as traders withdrew or sold around $44.5 million worth of tokens from the platform since June 4, according to CryptoQuant. The lack of liquidity on Binance.US will soon cause problems for traders looking for accurate prices compared to other exchanges, with Bitcoin’s bid-ask depth falling dramatically in recent days, according to researcher Kaiko.

Binance’s communication to its clients

In the email to clients, the platform said that “our ability to accepting fiat USD deposits and processing fiat USD withdrawals will be affected.”the company said, adding that it maintains 1:1 reserves for all client assets.

The SEC later said Tuesday that it is trying to freeze Binance.US assets and protect client funds, including through the repatriation of client investments held abroad.

In the email to clients, Binance.US said that the SEC’s allegations are “unsubstantiated” and that “we will continue to vigorously defend ourselves.”

#Binance #suspend #dollars #due #SEC #lawsuit

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.