Binance.US, the U.S.-based arm of the prominent cryptocurrency exchange Binance, has made the decision to temporarily suspend dollar withdrawals from its platform, a development closely linked to the ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC).
Reported by Reuters, Binance.US clients are no longer able to directly withdraw U.S. dollars from their accounts. Instead, they are required to convert their dollar funds into stablecoins or other digital assets, which can then be withdrawn. This move effectively transforms Binance.US into a crypto-exclusive exchange, limiting the ability to deposit and withdraw fiat currency.
The suspension of dollar withdrawals follows a sequence of regulatory actions. Earlier this year, Binance.US suspended dollar deposits after the SEC requested the freezing of its assets. The regulatory body filed a lawsuit against Binance and its CEO, Changpeng Zhao, levying allegations of deceptive practices, market manipulation, and misappropriation of customer funds.
Furthermore, the SEC accused Binance of being enmeshed in a “web of deception,” which involved artificially inflating trading volumes.
Binance.US’s decision to halt dollar withdrawals is believed to be influenced by its banking partners, who have observed a decline in business activities in light of the regulatory scrutiny.
The SEC’s assertive stance and the range of allegations made against the world’s largest cryptocurrency exchange have cast a shadow over its interactions with financial institutions.