Binance, the world’s largest cryptocurrency exchange, has announced the suspension of US dollar deposits and urged its clients to withdraw their dollars by early next week.
This decision comes in the wake of charges levelled against the company by the US Securities and Exchange Commission (SEC). The SEC accused Binance of violating securities laws and engaging in deceptive practices, describing the alleged violations as an “extensive web of deception” and “calculated evasion of the law.”
The charges include allegations that Binance allowed US residents to trade on its platform without being registered as a securities exchange in the US, as well as accusations of misusing customer funds.
In response to the charges, Binance.US, a separate entity from Binance, took to Twitter to inform customers that USD deposits were being suspended, and banking partners were preparing to pause USD withdrawal channels as early as June 13.
The exchange encouraged customers to withdraw their USD funds via bank transfer by the same date. Binance referred to these measures as proactive steps taken during a transition period to become a crypto-only exchange.
The SEC’s civil complaint listed 13 charges against platforms and investment entities controlled by Binance founder Changpeng Zhao. In addition to requesting the freezing of assets affiliated with the company and Zhao, the SEC’s actions come shortly after charges were filed in March by another US regulator, the Commodities Futures and Exchange Commission.
Despite the regulatory challenges, Binance expressed its strong defence against the SEC’s accusations, stating its determination to vigorously protect itself, its customers, and the industry from what it considers meritless attacks. The case represents a significant development in the ongoing regulatory scrutiny faced by Binance and the broader cryptocurrency industry.
