Binance.US, a prominent cryptocurrency exchange, has made significant changes to its U.S. operations in the face of regulatory scrutiny, an SEC lawsuit, and legal complications. The modifications include the cessation of direct U.S. dollar withdrawals, requiring customers to convert their funds into stablecoins or digital assets before withdrawal, according to the updated terms of service communicated via email on Tuesday.
The Securities and Exchange Commission's (SEC) lawsuit against Binance.US, its parent company Binance, and Changpeng Zhao includes 13 securities law breaches. These allegations range from fund diversion to inflated trading volumes. This aggressive approach by the SEC has resulted in the company's banking partners showing reluctance to continue their relationships with Binance. US.
In addition to these operational changes, the Federal Deposit Insurance Corporation (FDIC) no longer insures U.S. dollar deposits at Binance. The US. The firm had previously suspended dollar deposits earlier in the summer due to ongoing legal issues.
On an international level, Binance has stopped new user registrations in the UK. This action follows restrictions imposed by the Financial Conduct Authority (FCA) on its promotions partner, Rebuilding Society. These developments highlight the growing regulatory challenges faced by cryptocurrency exchanges globally.
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