Binance Claims U.S. Banks Are Blocking Its Access
- 1 Binance Claims U.S. Banks Are Blocking Its Access
Binance Claims U.S. Banks Are Blocking Its Access: According to Binance.US, its banking partners will be “paused” as early as next week. As both Binance and its billionaire owner Chang peng Zhao battle the Securities and Exchange Commission, which filed 13 charges against them earlier this week, its banking transactions and relationship with Zhao have drawn considerable attention.
In an effort to prevent asset flight, the SEC filed an emergency motion for a temporary restraining order based on Zhao’s ownership over Binance subsidiaries.
Upon June 13, Binance Claims U.S. Banks Are Blocking Its Access so Binance US customers will no longer be able to purchase crypto on its platform using U.S. dollars, reducing the exchange’s ability to conduct business in the United States, as both payment and banking partners have indicated their intention to halt USD fiat channels, according to the exchange.
The exchange announced the change on Twitter late Thursday night, blaming the Federal Trade Commission’s “unjustified civil claims against our business.” The exchange said it had preemptively disabled customers’ ability to purchase and deposit U.S. dollars.
Currently, the SEC is closely monitoring Binance’s banking transactions. In a civil complaint filed against the exchange and its founder, Chang peng Zhao, the SEC alleges both have violated U.S. securities laws.
An emergency motion for a temporary restraining order was filed by the SEC in response to Zhao’s influence over and ownership of Binance ‘s U.S. and international arms because Binance Claims U.S. Banks Are Blocking Its Access, an international network of offshore holding companies accused of moving billions of dollars of assets between them. U.S. dollars would have been frozen anyway as a result of that restraining order.
Money will not be lost by customers. It is still theoretically possible for those who have not withdrawn their funds by the shutdown date to convert them into a stable coin such as Tether and then withdraw those funds and exchange them for dollars elsewhere.
Although it seems that Binance’s banking partners have decided that the exchange is too risky to continue to deal with, and that the revelations from the SEC case are too significant to ignore.
Documents provided by Binance to the SEC indicate that the exchange’s disclosed U.S. banking partners have processed billions of dollars in transactions for the U.S. exchange, including Axis Bank, Cross River Bank, and the failed Silver gate, Signature, and Silicon Valley Banks.
There had already been several banking partners who stopped serving Binance, and it was not immediately clear which banking partners Binance retained.
Binance is the leading cryptocurrency exchange by volume in the world, with users spread across more than 180 countries. In addition to its numerous features, it is very easy to use and suitable for beginners. It also offers a superb Binance Academy learning section that will help you gain a deeper understanding of cryptocurrency.
Binance Claims U.S. Banks Are Blocking Its Access : Effect on Support for Customers
Binance ‘s support for American customers has suffered as a direct result of the restrictions placed on the company’s ability to work with U.S. institutions. Users can’t use the platform for anything if they can’t access the banks that power the system.
Customers in the United States can no longer buy, sell, or trade bitcoins because Binance Claims U.S. Banks Are Blocking Its Access . In addition, service has been disrupted because Binance is only able to respond to customer service queries in batches.
Binance Claims U.S. Banks Are Blocking Its Access : Reaction from Binance
Binance has made several measures to address the problems caused by the withdrawal of support from U.S. banks. First, the corporation has issued a statement in which it reiterates its willingness to collaborate with financial institutions and other agencies in the United States.
To further guarantee compliance with all relevant U.S. regulations, it has also revised its internal policies. Among these are more stringent reporting procedures and attempts to better authenticate the identities of users.
Binance has also introduced a service known as Binance US, which was done so that the company could better serve the requirements of consumers located in the United States. At the moment, cardholders of American Express can use this service to do transactions in dollars using the American currency.
Binance is trying to streamline the transaction process for its users by establishing a new system that will provide direct access to financial services. This new system will be implemented in the near future.
Binance Claims U.S. Banks Are Blocking Its Access : Possible Consequences
Binance Claims U.S. Banks Are Blocking Its Access so the issue may have repercussions that are far-reaching for the entire cryptocurrency market.
It will result in disruption in the short term, with fewer alternatives for providing customer service and more work for consumers to do in order to complete transactions. In the long run, this may have an effect on the price of cryptocurrencies and set off a shockwave that would travel throughout the market.
Other exchangers may learn from Binance’s experience and take steps to conform to U.S. banking requirements to avoid a similar fate as Binance Claims U.S. Banks Are Blocking Its Access . Exchanges’ operations and the services they provide could be impacted by the increased scrutiny and compliance expenses that could result from this.