On Thursday, Binance.US announced that USD withdrawals from their exchange would be temporarily suspended until their SEC-related issues are resolved. The SEC's lawsuit against Binance, which began on Monday, accuses the crypto exchange of violating US regulatory laws. As a result, USD deposits and withdrawals are currently not possible on the exchange. Additionally, the SEC has obtained a freeze on Binance's assets in the US.
"The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry. Binance.US and our business partners have not been spared in the use of these tactics, which has created challenges for the banks with whom we work," Binance US stated in their latest tweet.
Binance US is the official independent branch of the world's largest exchange (Binance) in the United States. They tweeted that their banking partners and the crypto exchange had agreed to stop further deposits in USD beginning from the 13th of June.
"As a result, in an effort to protect our customers and platform, today we are suspending USD deposits and notifying customers that our banking partners are preparing to pause fiat (USD) withdrawal channels as early as June 13, 2023. We encourage customers to take appropriate action with their USD," Binance US added.
Binance US Transitioning to Crypto-Only Exchange
In their announcement, Binance revealed they would be moving to achieve their objective of transitioning to a crypto-only exchange. This means their users in the United States would only make payments with other cryptocurrencies other than the USD.
"Our priority is and has always been, our customers. We are taking these proactive steps as we–for a time–transition to a crypto-only exchange. To be clear, we maintain 1:1 reserves for all customer assets. Any downtime in processing withdrawals may be the result of elevated volumes and weekend bank closures. Moreover, trading, staking, deposits, and withdrawals in crypto remain fully operational," Binance US said.
Not only will staking and trading remain functional, but they also noted that they are committed to making the digital market in the United States thrive. They also called the Securities and Exchange Commission's attacks "meritless," as the agency didn't have a solid reason to attack them. "While we remain open to a productive compromise that enables a thriving digital asset marketplace in America, Binance.US will continue to vigorously defend ourselves, our customers, and industry against the meritless attacks of the SEC," Binance concluded.
The Binance SEC Lawsuit
The US Securities and Exchange Commission (SEC) sued Binance, its founder and CEO Changpeng Zhao, and the operator of its US exchange on Monday for committing crimes relating to money laundering and operations without necessary licenses.
Binance wasn't the only crypto establishment targeted by the SEC within the same period. After suing Binance on Monday, Coinbase was another exchange handed the court papers by the commission. The Binance SEC case comprises 13 alleged charges against the crypto exchange, stating that the exchange should be penalized for committing many crimes.