{"id":495601,"date":"2023-06-09T07:46:21","date_gmt":"2023-06-09T05:46:21","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=495601"},"modified":"2023-06-09T16:31:28","modified_gmt":"2023-06-09T14:31:28","slug":"binance-us-getting-cut-off-from-banks","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/cryptocurrency\/495601-binance-us-getting-cut-off-from-banks.html","title":{"rendered":"Binance.US getting cut off from banks"},"content":{"rendered":"

Binance.US is being cut off from its banking partners in the fallout from a Securities and Exchange Commission lawsuit against the cryptocurrency exchange.<\/p>\n

In an email to customers, the platform said its payment and banking partners have signalled an intent to pause US dollar fiat channels as early as June 13.<\/p>\n

That means \u201cour ability to accept USD fiat deposits and process USD fiat withdrawals will be impacted,\u201d the company said, while adding that it maintains 1:1 reserves for all customer assets.<\/p>\n

Binance.US, which tweeted the email, said it\u2019s \u201csuspending USD deposits and recurring buy orders today\u201d and transitioning to a \u201ccrypto-only exchange.\u201d<\/p>\n

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The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry.\u00a0https:\/\/t.co\/AZwoBOgsqS<\/a>\u00a0and our business partners have not been spared in the use of these tactics, which has created\u2026\u00a0pic.twitter.com\/rlIe6swIoY<\/a><\/p>\n

\u2014 Binance.US 🇺🇸 (@BinanceUS)\u00a0June 9, 2023<\/a><\/p><\/blockquote>\n<\/div>\n

In a lawsuit Monday, the SEC accused Binance and its founder Changpeng \u2018CZ\u2019 Zhao of mishandling customer funds, misleading investors and regulators, and breaking securities rules.<\/p>\n

The agency subsequently said it\u2019s seeking to freeze Binance.US\u2019s assets and protect customer funds, including through the repatriation of client investments held abroad.<\/p>\n

Binance.US in the email to customers said the SEC\u2019s allegations are \u201cunjustified\u201d and that \u201cwe will continue to vigorously defend ourselves.\u201d<\/p>\n

The platform said it will delist trading pairs involving the US dollar starting next week but continue to support pairs involving stablecoins \u2014 tokens that are supposed to hold a constant value, typically $1.<\/p>\n

Richard Galvin<\/strong><\/a>, co-founder at Digital Asset Capital Management, said pricing differentials were emerging between Binance.US and Binance.com as US customers \u201clook to rapidly sell and remove US dollars from the exchange.\u201d<\/p>\n

Something similar happened in late May at Binance Australia when the platform was about to be\u00a0cut off<\/a>\u00a0<\/strong>from a key Australian dollar payment route, he said.<\/p>\n

BNB, a token native to Binance, fell as much as 4.4% on Friday, extending a recent period of underperformance of wider digital-asset markets. Bitcoin and Ether, the top two coins, shed about 1% as of 12:40 p.m. in Singapore.<\/p>\n

BNB has sunk some 17% this week, a retreat that compares with a roughly 4% drop in a gauge of the 100 largest digital tokens over the same period.<\/p>\n

The SEC this week widened its crackdown on crypto with the action against Binance followed later by a lawsuit targeting Coinbase Global Inc. for running an illegal exchange.<\/p>\n

Coinbase has rebutted the SEC\u2019s claims and said it\u2019s prepared to take the legal fight all the way to the Supreme Court.<\/p>\n

Now read: Crypto titan could spend most of remaining life behind bars<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"

The SEC this week widened its crackdown on crypto with the action against Binance followed later by a lawsuit targeting Coinbase for running an “illegal” exchange.<\/p>\n","protected":false},"author":341034,"featured_media":479229,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[44696],"tags":[49375,87023,73222,41576,54019,32394],"class_list":["post-495601","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-binance","tag-binance-us","tag-changpeng-cz-zhao","tag-coinbase","tag-securities-and-exchange-commission-sec","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/495601"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=495601"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/495601\/revisions"}],"predecessor-version":[{"id":495605,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/495601\/revisions\/495605"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/479229"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=495601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=495601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=495601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}