Binance suspends USD deposits, following SEC crackdown
Binance.US, the American offshoot of the popular global cryptocurrency exchange Binance, has recently made an important announcement that has caught the attention of its 670,000 U.S. users.
Due to what it describes as "extremely aggressive and intimidating tactics" from the United States Securities and Exchange Commission (SEC), Binance.US said it is suspending USD deposits in an effort to protect its customers and platform. Furthermore, the firm notified customers that its banking partners are preparing to pause fiat (USD) withdrawal channels as early as June 13, 2023.
This comes after the SEC issued an emergency order on Tuesday, June 6 to freeze Binance.US. assets, and although it initially issued a report reassuring customers that assets remained safe adding that the platform continues to be fully operational with deposits and withdrawals functioning as normal, it is making a turnaround decision.
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This is only the latest of the many regulatory battles that have plagued Binance.US, with various authorities scrutinizing its operations as far back as 2021. In March, the U.S. Commodity Futures Trading Commission (CFTC) took legal action against Binance Holdings and its esteemed CEO, Changpeng “CZ” Zhao, alleging trading violations.
Also, securing banking partnerships within the United States has proven to be an uphill struggle for Binance.US. The regulatory crackdown on banks with crypto clients due to FTX's crash has heightened caution among financial institutions.
And to answer the burning question of whether the development would affect the trade of USD pairs on Binance's global platform. The company's customer support on Twitter responded that the suspension related to USD deposits and withdrawals on Binance.US would not directly affect Binance.com as both operate as separate entities.
