Binance.US Urges Cash Withdrawals Amid SEC's 'Ideological' Attack on Crypto Industry

Binance.US Urges Cash Withdrawals Amid SEC's 'Ideological' Attack on Crypto Industry

Binance.US, the American arm of cryptocurrency exchange Binance, has advised its customers to withdraw their cash from the platform as the Securities and Exchange Commission (SEC) intensifies what Binance refers to as its "ideological campaign" against the crypto industry. The exchange has notified customers that its partner banks will be shutting off fiat withdrawal channels, potentially hindering deposits and withdrawals in US dollars.

Binance.US has set a deadline of June 13 for customers to withdraw any fiat cash, cautioning that withdrawals may take longer than usual due to increased activity. Customer deposits, however, are secure as they are backed on a 1:1 ratio. Following the deadline, Binance.US will transition into a crypto-only platform until it can establish more stable banking partnerships.

In a statement, Binance.US criticized the SEC for its aggressive and intimidating tactics in pursuing its ideological campaign against the American digital asset industry. The exchange, along with its business partners, has faced challenges resulting from the SEC's actions. Binance.US affirmed its commitment to vigorously defending itself and its customers against the unjustified civil claims brought by the SEC.

Binance, as a whole, is currently facing 13 charges from the SEC, following months of regulatory scrutiny regarding its compliance with US securities laws. The SEC alleges various violations, including misrepresentation of trading controls on Binance.US and the unauthorized trading of "high-value" US clients on, despite supposed restrictions on American customers accessing the main platform.

The notice from Binance.US to withdraw cash underscores the escalating tensions between the SEC and the crypto industry. It highlights the impact of regulatory actions on cryptocurrency exchanges and the need for clearer guidelines and compliance measures within the evolving regulatory landscape.

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