An unexpected turn of events has sent shockwaves through the cryptocurrency community as Binance.US, the popular American exchange, announces its transformation into a crypto-only platform amidst mounting legal pressure from the Securities and Exchange Commission (SEC).
I was getting ready for bed last night when I saw an email from Binance.US.
I opened the email and I was quite shocked to find out that, due to the recent legal pressure from the Securities and Exchange Commission (SEC), Binance.US will be transforming into a crypto-only platform.
As U.S. banks prepare to cut ties with Binance.US, the exchange is encouraging all customers to withdraw their United States Dollars (USD) from the platform ASAP.
USD deposits have been suspended and USD trading pairs will be delisted on June 12th.
If a customer still has a USD balance after June 15th, the assets can supposedly be converted to a withdrawable stablecoin.
Here is a screenshot of the email I received last night:
Shortly after Binance.US sent out their email to customers, the company took to Twitter to let the masses know.
Binance.US ended their email by claiming this move to a crypto-only exchange is only temporary, as they search for alternative banking partners.
I have concerns that Binance.US will be able to secure banking partners as they are facing litigation and increasing pressure from the SEC to freeze customer assets on the exchange.
In my opinion, Binance only created Binance.US to tap into the U.S. market.
Therefore, if American customers cannot use their local USD currency on the platform, I expect the platform will see a significant drop in it's userbase and overall trading volume.
With a significant drop in customers and trading volume, I am not sure how practical it will be for Binance to continue operating their U.S. exchange.
What are your thoughts on this news?
Do you think this is a good or bad move for Binance?
Will Binance.US survive their legal and banking challenges?
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