Binance US switches to 'crypto-only' after US dollar falls
Date: 2023-08-24 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
Under regulatory pressure, Binance.US is moving to a cryptocurrency exchange, replacing USDT as the underlying asset.
According to Binance, the move is a strategic response to the suspension of USD channel banking partners following the Securities and Exchange Commission (SEC) lawsuit.
Following the transition, Binance.US introduced an enhanced feature for buying and selling cryptocurrencies through its mobile app. It allows clients to transact with over 150 supported cryptocurrencies, using USDT to streamline transactions and offer a solid alternative to the US dollar.
Based on this, Binance.US is partnering with third-party payment provider MoonPay to facilitate the funding of USDT balances. These new US dollars support USDT purchases through a variety of payment methods, including debit cards, credit cards, Apple Pay, and Google Pay.
However, the path to this transition was not smooth. The need for a radical transition to a cryptocurrency exchange arose as a result of careful scrutiny by regulators.
The accusations of violating securities laws have resulted in Binance.US and related entities facing legal action from the SEC, prompting banking partners to suspend USD channels. This resulted in delays in processing withdrawals and the suspension of USD deposits and recurring buy orders. Subsequently, the platform began the process of delisting USD trading pairs.
Despite these issues, Binance.US supports cryptocurrency trading, staking, deposits and withdrawals. It also fixed most of the USD withdrawal delays in June when the platform advised its users to convert their USD into stablecoins.
The implementation of the “Buy and Sell Crypto” feature signals Binance’s resilience to regulatory scrutiny. By adopting USDT as the underlying asset, it can continue to offer its clients a platform for cryptocurrency transactions despite the obstacles that arise.
