Binance has announced that it will resume USD services for US customers, with the rollout happening soon. The announcement marks a nearly two-year suspension of fiat transactions on the platform in the US.
The move enables eligible users to once again deposit and withdraw USD via bank transfer and trade crypto using USD pairs.
How Binance US Got Suspended
In June 2023, the suspension occurred in the wake of the SEC accusing Binance and its founder, Changpeng Zhao of multiple violations of securities laws. These included operating unregistered exchanges and misleading investors about trading controls.
Legal pressure drove Binance to make notable changes in its business and leadership. Zhao agreed to pay a $50 million fine and quit his role as the CEO in November 2023 under a guilty plea to U.S. criminal charges. The crypto giant also agreed to pay fines of $4.3 billion and plead guilty.
Shortly after the suspension, by January 2024, the company’s stake in USD trading volume had dropped from 10% to 0.1%. The lack of fiat on-ramps caused this drop despite Binance.US offering over 160 cryptocurrencies.
User and Regulatory Significance
The return of USD services eases users’ frustration from the two-year absence of USD transactions. Users have had to rely on fiat gateways for liquidity and withdrawals.
Furthermore, this development indicates a more crypto-friendly regulatory approach under the new administration. This is because it comes on the backdrop of the SEC and Binance jointly requesting a 60-day pause in an ongoing lawsuit to explore potential resolutions. It could also set a precedent for other crypto exchanges facing similar challenges.
The restoration of USD services to Binance.US is a promising indicator of the US crypto sector despite the changing legal environment and other industry challenges. It could result in improved liquidity, broader acceptance, and a stronger trading environment for both personal and institutional investors.
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