Binancethe world’s largest cryptocurrency exchange, announced on June 8 that suspended dollar deposits and will encourage customers to withdraw their dollars from their accountsafter the SEC sued her.
(See: Binance rules against the lawsuit by the SEC)
The United States Financial Market Control Agency (SEC) sued Binance, as well as its boss, Changpeng Zhao, for circumventing regulations.
According to the document filed in federal court in Washington, Binance allowed the US residents use your platform even though the company is not registered before the authorities of the country.
“We are suspending dollar deposits and notifying our clients that our banking partners are preparing to suspend dollar withdrawal channels as of June 13”Binance US tweeted. “We are taking these proactive steps as we transition, for a while, to a crypto-only exchange”added the platform.
(See: The US Sues Binance for Violating the Country’s Stock Market Rules)
“We encourage our customers to withdraw their dollars via bank transfer (…) before June 13”wrote in a note to clients.
Changpeng Zhao
EFE
The SEC criticizes Binance for not having registered its platform, its own cryptocurrencies as BNB or its other financial products in the United States.
The regulator also claims that contrary to what Binance has argued, the American subsidiary and funds deposited in it by customers were controlled by parent company.
On Tuesday, the commission asked the court to freeze assets affiliated with the company and Zhao, who was once considered the archrival of disgraced cryptocurrency mogul Sam Bankman-Fried.
(See: Myths and truths about cryptocurrencies)
Binance said Thursday that “will continue to vigorously defend itself, its clients and the industry against baseless attacks by the SEC”.
In March, another US regulator, the Commodity Futures and Exchange Commission, had already filed a lawsuit against Binance.
(See: Cryptocurrencies: details of how they will be regulated in the European Union)
AFP
