Binance.US claimed that the actions are a response to the SEC’s “extremely aggressive and intimidating tactics” in order to protect customers and the platform.
Binance.US has informed its customers of an upcoming halt to fiat (USD) withdrawal channels as early as June 13 and has announced the suspension of United States currency deposits.
On June 9, Binance.US announced that the United States Securities and Exchange Commission had used “extremely aggressive and intimidating tactics” against the company, pushing it to take action.
The company announced that it has suspended USD deposits in an effort to safeguard its clients and platform. In addition, Binance.US is “notifying customers that our banking partners are preparing to pause fiat (USD) withdrawal channels as early as June 13, 2023.”
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 🇺🇸 (@BinanceUS) June 9, 2023
The company additionally stated that it planned to switch to a cryptocurrency-only exchange while keeping a 1:1 ratio for client funds.
The notice stated that future processing delays “may be the result of elevated volumes and weekend bank closures.” It confirmed that cryptocurrency trading, staking, deposits, and withdrawals are still fully operational.
Binance.US and its banking partners have encountered more difficulties as a result of the SEC’s “ideological campaign against the American digital asset industry,” the company claimed. These banking partners have signalled their intention to discontinue fiat access to the exchange.
The company announced that USD deposits would be stopped as of June 9 and that USD trading pairs would be taken off the market the following week. Tether trading pairs, however, would still be supported. Any USD that was still on the exchange could be turned into a stablecoin that could be withdrawn on-chain, according to the statement.
On June 8, Binance.US delisted two BUSD pairings and eight Bitcoin pairs, indicating that OTC Trading Portal services had been suspended. Early in May, BTC traded at a premium on the US exchange.
On June 6, the SEC issued an urgent request to freeze Binance.US’s assets. The company informed consumers that their assets were secure the next day and noted that deposits and withdrawals continued to work normally on the platform, which continued to be fully operating.