Binance.US drops dollar trading amid banking partners’ withdrawal

Binance CEO Changpeng Zhao, Image courtesy of Binance, Facebook

Binance.US, the American subsidiary of the world’s largest cryptocurrency exchange, announced that it will cease offering trading services in United States dollars. This decision comes after the company’s banking partners withdrew support due to pressure from federal regulators.

The inability to trade in US dollars is a significant setback for Binance.US, as one of the primary functions of a cryptocurrency exchange is to enable users to convert traditional currency into digital currencies like bitcoin and ether. In a message to customers, Binance.US stated that it is “taking necessary actions as we transition to a crypto-only exchange.” The company also revealed that its banking partners had indicated they would no longer facilitate the movement of US dollars on and off the Binance.US platform.

This announcement follows a lawsuit filed against Binance by the Securities and Exchange Commission (SEC) on Monday, accusing the company and its CEO, Changpeng Zhao, of mishandling customer funds and providing false information to regulators. In a separate filing, the SEC requested a federal judge in Washington to freeze assets related to US-based customers of Binance, citing “the defendants’ years of violative conduct.”

The cryptocurrency industry has faced increased scrutiny from federal regulators since November when the collapse of the FTX exchange triggered an industry-wide crisis. Following its lawsuit against Binance, the SEC filed a separate case against Coinbase, the largest American cryptocurrency exchange. While some crypto companies have pledged to fight the crackdown, others are considering leaving the United States altogether.

Binance US
Image courtesy of Proxima Studio

In its message to customers yesterday, Binance.US claimed that it was experiencing “extremely aggressive and intimidating tactics” from the SEC. The company announced that it would suspend deposits of US dollars and advised users to withdraw any dollars stored on the exchange by June 13, reported Bangkok Post.

Despite these challenges, Binance.US sought to reassure its customers that their funds were safe, stating, “To be clear, we maintain 1:1 reserves for all customer assets. Customer funds are always safe, secure, and available.”

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Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.