Binance.US, the American arm of the renowned cryptocurrency exchange Binance, has announced its decision to transition into an all-crypto exchange starting June 13 temporarily. The move comes in response to mounting pressures from the U.S. Securities and Exchange Commission (SEC), which recently launched significant enforcement action against the company.
To comply with the regulatory requirements and protect its customers, Binance.US will suspend United States dollar (USD) deposits and delist USD-based trading pairs shortly after. However, it is important to note that trading, staking, and deposits and withdrawals in cryptocurrencies will remain fully operational during this transitional period.
The temporary shift to an all-crypto exchange is part of Binance.US’s strategy to navigate the challenging landscape due to what it perceives as “extremely aggressive and intimidating tactics” from the SEC. The company has made it clear that it will vigorously defend itself, its customers, and the entire digital asset industry against what it believes are unjustified attacks from the regulatory agency.
The SEC has accused Binance.US of channeling approximately $12 billion to firms under the control of CEO Changpeng Zhao. Both Zhao and Binance.US have vehemently denied these allegations. A court hearing is scheduled for June 13, coinciding with the transition to the all-crypto exchange, where the company will have an opportunity to present its defense against the SEC’s claims.
Despite the ongoing legal battle, Binance’s native token, BNB, has remained stable 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 encountered mounting challenges due to the SEC’s aggressive stance on the American digital asset industry. In response, the banking partners have indicated their intention to sever fiat on-ramps to the exchange. Consequently, Binance.US has decided to suspend USD deposits and delist USD trading pairs while supporting Tether (USDT) trading pairs.
Binance.US acknowledges that there may be occasional disruptions in fiat withdrawal channels, particularly due to increased transaction volumes and potential bank closures during weekends. The company urges its customers to remain patient throughout the transition process.
Furthermore, due to regulatory developments, Binance.US recently delisted eight Bitcoin (BTC) pairs and two Binance USD (BUSD) pairs. In addition, its Over-the-Counter (OTC) Trading Portal services have been temporarily paused. These measures reflect the challenges the exchange and its banking partners face due to the SEC’s actions.
Despite the SEC’s emergency order to freeze Binance.US’s assets, the exchange assures its customers that their assets remain secure. The platform continues to operate fully, with deposits and withdrawals functioning normally.
The court hearing on June 13 will play a pivotal role in shaping the future of Binance.US and the broader digital asset marketplace in the United States. The outcome of the case will have significant implications for cryptocurrency exchanges and investors, as it will further define the regulatory landscape and its impact on the industry.