On Thursday, the Binance US team issued a report on suspending US dollar deposits. The Binance team stated that its banking partners are working on halting fiat dollar withdrawals as of June 13. From June 9, the Binance US team intends to suspend US dollar deposits, followed by the delisting of trading pairs backed by the US currency.
The announcement came days after the crypto exchange was sued by the US Securities Exchange Commission (SEC) and the chief executive Changpeng “CZ” Zhao for contravening the law. As per the court filing, Binance accused Zhao of rerouting approximately $12 billion to his firms.
Binance Suspends Withdrawal and Deposits
In a statement on Twitter issued today at 0233 GMT, the crypto exchange confirmed that the suspension of withdrawal and depository services was among the Binance proactive measures. The tweet mentioned that during the current transition to a crypto-only exchange, Binance considered taking proactive steps.
Meanwhile, the Binance team has confirmed that its platform’s trading, deposit, withdrawal, and staking services will continue to operate amid the ongoing legal troubles.
On June 8, the SEC issued a report to the Federal court proposing that Binance assets should be partially frozen. Responding to the SEC proposal, the chief operating officer at Stack Funds, Matthew Dibbs, argued that suspending withdrawals has sparked worry among Binance users.
Dibbs stated that even though Binance US has smaller operations than Binance.com, suspending the firm’s core business would cause panic.
He lamented that from last week the largest crypto exchange by daily trading volume has been under regulatory scrutiny. This has prompted Binance to take meaningful steps to overcome regulatory limbo.
Impact of SEC Clamp Down on Crypto Assets
Surprisingly, the SEC charges on leading crypto exchange such as Binance and Coinbase has triggered Bitcoin, among other major digital assets, to react to the news.
As of this publication, it was reported that Bitcoin (BTC) failed to break the $27000 resistance level. According to CoinMarketCap, BTC is trading at $26587.39, with a modest increase of 0.59% over the last 24 hours.
While Binance native token BNB trades at $258.84, down by 1% in a day. As the SEC regulatory pressure intensifies, the popular market analyst at IG market Tony Sycamore noted that the reaction of most crypto assets has lately been unnoticed.
An announcement conveyed by Binance. US revealed that the ongoing regulatory clampdown by the SEC is quite aggressive and intimidating. The crypto exchange announced plans to prioritize protecting Binance’s key stakeholders from the SEC’s legal actions.
Futhermore, critics have lodged numerous claims against the SEC chair Gary Gensler concerning the SEC enforcement actions. In his earlier report, Gensler opposed the market speculations that the SEC is trying to limit the growth of the crypto sector.
According to Wayne Huang, the chief executive of XREX, the current regulatory pressure on the crypto sector will compel key market players to pursue effective ways to boost user experiences.
