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Binance.US announced on Thursday that it is suspending US dollar deposits, and its banking partners are preparing to halt fiat dollar withdrawals come June 13.
On Thursday, Binance’s US arm said it would suspend US dollar (USD) deposits on its platform, while its banking partners have said it will pause fiat dollar withdrawals channels as soon as June 13, Reuters reports.
The exchange said in a tweet it is taking “proactive steps” as it transitions to a crypto-only exchange for the time being following the SEC’s lawsuit earlier this week. The platform said staking, trading, deposits, and withdrawals in cryptocurrency remain fully operational. Binance.US further told its users it maintains a 1:1 reserve for customer assets.
The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry. https://t.co/AZwoBOgsqS and our business partners have not been spared in the use of these tactics, which has created… pic.twitter.com/rlIe6swIoY— Binance.US ðºð¸ (@BinanceUS) June 9, 2023
In a notice to customers, the exchange explained why it chose to take this step:
The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry. Binance.US and our business partners have not been spared in the use of these tactics, which has created challenges for the banks with whom we work.
SEC Cracks Down on Crypto
This week, the US Securities and Exchange Commission (SEC) appeared to declare all-out war on the crypto industry. The agency kicked the week off by suing Binance and its CEO, Changpeng Zhao, alleging the exchange mishandled customer funds and deceived investors and regulators about its operations. It further stated that both Zhao and the exchange failed to restrict US customers from its platform.
The SEC stepped up its attack the next day when it came after crypto exchange Coinbase. According to the agency, Coinbase acted as an unregistered broker, exchange and clearinghouse, charging it for “the unregistered offer and sale of securities in connection with its staking-as-a-service program.”
On Wednesday, the agency came directly after Binance.US by filing a motion in federal court for a temporary restraining order to freeze the assets of two of its unit - BAM Management US Holdings and BAM Trading Services. The SEC alleged that Zhao and Binance’s parent company controlled these two units secretly.
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