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The Binance logo is displayed on a screen in San Anselmo, California, June 6, 2023.
Justin Sullivan | Getty Images
binance Customers will no longer be able to use US dollars to buy cryptocurrencies on the platform as early as June 13, hampering the exchange’s ability to do business in the US, after both payment partners and banks “indicated their intention to shut down US dollar cash channels.” Temporarily,” said the exchange.
binance Announce the change Late Thursday night on Twitter, he blamed the US Securities and Exchange Commission for “unjustified civil lawsuits against our business.” The exchange said it had preemptively disabled customers’ ability to buy and deposit US dollars.
Binance’s banking dealings have been the focus of intense scrutiny by the Securities and Exchange Commission, which has filed a civil complaint against the exchange and its founder, Changpeng Zhao, alleging they violated US securities laws.
Zhao’s influence over and ownership of the US and international arms of Binance — an international network of offshore holding companies that the US Securities and Exchange Commission (SEC) allege has moved billions of dollars in assets between them — prompted the SEC to file an emergency application for a temporary restraining order. This restrictive order would have frozen US dollars from the exchange anyway.
Customers will not lose their money. Those who haven’t withdrawn their funds by the closing date can still theoretically convert them into a stablecoin like Tether, then withdraw them and convert them back into dollars elsewhere. But it notes that Binance’s banking partners have determined that the exchange is too risky for a customer to continue with, and that revelations from the SEC case have become too important to ignore.
The disclosed US banking partners, which include the failed Axos Bank, Cross River Bank, Silvergate, Signature and Silicon Valley Banks, processed billions of dollars in US stock exchange transactions, according to Binance documents filed with the Securities and Exchange Commission. Several banking partners have already stopped serving Binance and it was not immediately clear which banking partners Binance has retained.
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