After a lawsuit against the parent company
Crypto exchange Binance.US ends dollar trades
06/09/2023 10:33 am
After the lawsuit against the Binance trading platform, the US subsidiary of the world’s largest crypto exchange is discontinuing its dollar transactions. Binance.US will no longer allow deposits and withdrawals in the future. The move is not surprising, but could still “trigger panic,” experts warn.
A few days after a lawsuit by the US Securities and Exchange Commission, the US subsidiary of the world’s largest crypto exchange Binance announced that it would stop trading in dollars. Binance.US will no longer accept payments in US currency, the company announced on Thursday (local time) via Twitter. From June 13, customers could no longer have their credits paid out in dollars. However, deposits and withdrawals in cyber currencies and trading with them continued unchanged.
“Stopping payouts could cause concern or panic,” warned Matthew Dibb, chief operating officer of crypto-assets manager Stack Funds. After the advances of the SEC in the past few days, this step does not come as a surprise. Bitcoin and Binance cryptocurrency BNB price reactions were muted. “Either the market has come to terms with the SEC’s actions or hasn’t fully understood it yet,” said analyst Tony Sycamore of brokerage house IG Markets.
SEC tightens thumbscrews for crypto industry
According to the US Securities and Exchange Commission, Binance has built a “web of deception” to circumvent laws. Like its smaller competitor Coinbase, the company operates an unlicensed trading platform. Other allegations revolve around the manipulation of stock market turnover with the help of sham transactions and the diversion of customer funds. Binance has denied the allegations.
Days after last week’s lawsuit, the SEC also requested an injunction to freeze Binance’s US assets. Binance.US had described this step as “unjustified” and announced that it would defend itself in court. Deposits and withdrawals are possible as usual.