Binance.US, the American arm of the leading cryptocurrency exchange Binance, has announced its transition to an all-crypto exchange, effective June 13. The move comes as the company faces mounting pressures from the U.S. Securities and Exchange Commission (SEC) following a major enforcement action taken against it earlier this week.
In response to the regulatory scrutiny, Binance.US has temporarily suspended United States dollar (USD) deposits, and USD-based trading pairs will be de-listed shortly after. However, the exchange has emphasized that trading, staking, deposits, and cryptocurrency withdrawals will remain fully operational.
Vigorous defense against SEC allegations and legal battle
The decision to transition to an all-crypto exchange is part of Binance.US’s effort to protect its customers and platform amidst what it describes as “extremely aggressive and intimidating tactics” from the SEC. The company remains committed to defending itself, its customers, and the digital asset industry against what it deems as meritless attacks by the regulatory agency.
The SEC has accused Binance.US of directing $12 billion to companies controlled by CEO Changpeng Zhao, an allegation that both Zhao and Binance.US vehemently deny. The two parties are scheduled to appear in court on June 13, coinciding with the transition to an all-crypto exchange.
Despite the ongoing legal battle, Binance’s native token, BNB, has demonstrated stability, currently valued at $260.24. However, it experienced a 15% decline over the past week, likely influenced by the SEC’s classification of BNB as a security.
Binance.US and its banking partners have faced increasing challenges due to the SEC’s campaign against the American digital asset industry. As a result, these banking partners have signaled their intent to sever fiat on-ramps to the exchange. Consequently, Binance.US has suspended USD deposits and plans to delist USD trading pairs, while continuing to support Tether (USDT) trading pairs.
In the face of potential disruptions in fiat withdrawal channels, Binance.US has assured its customers that any downtime experienced in processing withdrawals may be due to elevated volumes and weekend bank closures. The exchange has urged customers to remain patient during this transition period.
Additionally, Binance.US recently delisted eight Bitcoin (BTC) pairs and two Binance USD (BUSD) pairs while temporarily pausing its Over-the-Counter (OTC) Trading Portal services. These changes reflect the challenges the exchange and its banking partners face due to the SEC’s actions.
Following the SEC’s emergency order to freeze Binance.US’s assets, the exchange has reassured its customers that their assets remain safe and that the platform continues to operate fully, with deposits and withdrawals functioning normally.
The outcome of the court hearing on June 13 will be crucial in determining the future of Binance.US and the broader digital asset marketplace in the United States. The case holds significant implications for both cryptocurrency exchanges and investors, as the regulatory landscape continues to evolve.
