Following regulatory pressure, Binance.US is transition to a crypto-only exchange, replacing USD with USDT as the base asset.
As Binance reported, this move is a strategic response to banking partners suspending USD channels following the Securities and Exchange Commission (SEC) lawsuit.
Following the transition, Binance.US has introduced an enhanced Buy & Sell Crypto feature through its mobile app. It allows customers to transact with over 150 supported cryptocurrencies using USDT to streamline transactions and provide a reliable alternative to USD.
Building on this, Binance.US is partnering with third-party payment provider MoonPay to facilitate the funding of USDT balances. These new USD ramps support USDT purchases through a variety of payment methods, including debit cards, credit cards, Apple Pay, and Google Pay.
However, the road to this transition was not smooth. The need for a drastic move to a cryptocurrency-only exchange resulted from significant scrutiny by the regulators.
If CryptoStores reported, allegations of violating securities laws have led Binance.US and related entities to file a lawsuit from the SEC, prompting banking partners to suspend USD channels. This led to delays in processing withdrawals and caused USD deposits and recurring buy orders to be suspended. Subsequently, the platform started delisting USD trading pairs.
Despite these challenges, Binance.US has remained active in crypto trading, staking, deposits and withdrawals. It also resolved most of the delayed US dollar withdrawals in June when the platform advised its users to convert their USD to stablecoins.
Implementing the Buy & Sell Crypto feature indicates Binance.US’s resilience in the face of regulatory scrutiny. By adopting USDT as a base asset, it can continue to provide a platform for crypto transactions to its customers despite the hurdles.
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