Binance, the leading cryptocurrency exchange entangled in a legal battle with the US Securities and Exchange Commission (SEC), announces a significant change for its users. Going forward, Binance will no longer support deposits in US dollars, and it also cautions its customers about the suspension of US dollar withdrawals within the coming week.
This decision comes in response to the SEC’s motion to freeze Binance’s US assets while the lawsuit progresses through federal court. Binance firmly asserts that this action by the SEC is unnecessary, as it has already addressed concerns regarding the safety of customer assets.
In a tweet addressed to its 400K followers, Binance.US expressed dissatisfaction with the SEC’s aggressive tactics, deeming them unnecessary in their campaign against the American digital asset industry. In order to safeguard their customers and platform, Binance.US will temporarily suspend USD deposits, and their banking partners are preparing to halt USD withdrawal channels by June 13th, 2023.
However, Binance assures its users that crypto-denominated trading, deposits, withdrawals, and staking activities will continue without interruption.
This suspension of USD services is part of Binance’s strategic plan to transform into a “crypto-only exchange.” While the banking partners remain undisclosed, Binance encourages customers to take appropriate action with their US dollars and provides detailed instructions regarding the upcoming suspension.
On June 5th, the SEC filed a lawsuit against Binance, accusing the world’s largest crypto exchange of various violations. The charges include artificially inflating trading volumes, misappropriation of customer funds, failure to enforce restrictions on US customers, and misleading investors about market surveillance controls. Binance founder and CEO Changpeng Zhao, along with the operator of Binance’s US exchange, were also named in the lawsuit.
In a separate move by the SEC, Coinbase, the world’s second-largest crypto exchange, faced legal action for allegedly operating illegally without registering as an exchange. The SEC claims that Coinbase traded multiple crypto assets that should have been classified as securities, thereby jeopardizing investor interests. Coinbase responded by affirming its commitment to compliance and stated that its operations would continue unaffected.
Binance.US, which claims to have cooperated with SEC regulators in good faith for over two years, views this lawsuit as another example of enforcement-based regulation under the current Commission. They firmly believe the lawsuit to be unfounded and are fully prepared to mount a vigorous defense.
As for Robinhood Markets, they announced the removal of three cryptocurrency tokens, namely Solana, Cardano, and Polygon, from their platform effective June 27th. This action is a direct response to the SEC’s intensified crackdown on the crypto industry.