WASHINGTON: Cryptocurrency exchange Binance has announced to stop accepting funds in US dollars.
Binance encouraged its users to withdraw their deposits in dollars by the beginning of next week, a move by the exchange after it was fined by the US government.
The US Securities and Exchange Commission on Monday charged the crypto giant with securities law violations, saying the company’s actions amounted to malfeasance and attempted evasion.
Binance is allegedly accused of allowing US citizens to trade even though the platform itself is not registered as a securities exchange in the US. The case also alleges that the company misappropriated customer funds.
Binance America said on Twitter that we are suspending US dollar withdrawals and informing customers that our banking partners are also preparing to suspend US dollar withdrawal channels starting June 13.
He further said that currently we are a major crypto money transfer company and therefore we are taking these proactive steps. “We encourage customers to withdraw their US dollars by bank transfer by June 13,” the exchange said in a note to clients.
The US Securities and Exchange Commission has filed 13 charges against Binance in its complaint, including the platforms as well as the venture capitalists managed by its founder, Cheng Peng Zahu.
The commission on Tuesday asked the courts to freeze assets linked to the company and Chengpeng Zaho, who was once seen as a rival to notorious crypto tycoon Sam Bankman Fried.
Binance on Thursday criticized the actions of the US Securities and Exchange Commission, saying that it will continue to vigorously defend itself, its customers and the industry against the US Securities and Exchange Commission’s unwarranted attacks. The case follows allegations against Binance by another U.S. regulator, the Commodities Futures and Exchange Commission, in March.
