Binance Halts Trading in Dollars on Binance.US
The American branch of Binance, the giant cryptocurrency exchange, said late on Thursday that it would no longer allow customers to trade on its platform using U.S. dollars, after its banking partners cut the firm off in response to a crackdown by federal regulators.
The move is a major blow to Binance.US, the American arm of the world’s largest crypto exchange. One of the main functions of an exchange is allowing users to convert their traditional money into digital currencies like Bitcoin or Ether. Binance will no longer be able to offer that service in the United States.
In a message to customers, Binance.US said it was “taking necessary actions as we transition to a crypto-only exchange.” In recent days, the company said, its banking partners had signaled that they would no longer facilitate the movement of dollars on and off Binance.US’s platform.
The Securities and Exchange Commission sued Binance on Monday, accusing the firm and its chief executive, Changpeng Zhao, of mishandling customer funds and lying to regulators. In a separate filing, the S.E.C. asked a federal judge in Washington to freeze assets related to U.S.-based customers of Binance, citing “the defendants’ years of violative conduct.”
Source: The New York Times
