![]() ![]() In the email to customers, the platform said “our ability to accept USD fiat deposits and process USD fiat withdrawals will be impacted,” the company said, while adding that it maintains 1:1 reserves for all customer assets. The lack of liquidity on Binance.US will soon cause problems for traders seeking accurate pricing compared to other exchanges, with Bitcoin bid-and-ask depth falling dramatically in recent days, according to researcher Kaiko. ![]() Stablecoins, which are digital tokens typically tied to the value of a fiat currency like the dollar, are a vital means of storing value for crypto traders.īinance.US’s reserves of Ether, the second largest cryptocurrency by market value, are nearing zero as traders withdrew or sold around $44.5 million in tokens from the platform since June 4, per CryptoQuant. Meanwhile, reserves of stablecoins have more than halved in the last five days, according to CryptoQuant. The US platform’s decline had already been set in motion by an earlier lawsuit against Binance by the Commodity Futures Trading Commission in March, with its May volumes around 61% lower than they were a month earlier, CCData said. Binance.US recorded about $6 billion in monthly volume in May, according to CCData, compared to ’s $212 billion. While Binance.US is meant to be the only way Americans can trade with the company, its relative size means any changes will barely impact the larger Binance’s hold over the broader crypto market, where it processes roughly 54% of the sector’s monthly trading volume. Binance and Zhao have disputed the allegations. Both are owned predominantly by Changpeng “CZ” Zhao, ’s chief executive, who is also being sued. The exchange was targeted by the SEC earlier this week alongside Binance Holdings Ltd., operator of the much larger crypto venue which it claims is separate from US activity. That means Binance.US won’t be able to process deposits or withdrawals in dollars, forcing the platform to change tack and go all in on cryptocurrencies.īinance.US’s customer assets total over $2.2 billion, according to a memorandum from the Securities and Exchange Commission. In an email to customers late Thursday, Binance.US told users its payment and banking partners had signaled an intent to pause support for the exchange’s dollar channels as early as June 13. (Bloomberg) - Crypto exchange Binance.US is being thrown deeper into disarray, as banking partners prepare to rescind support, liquidity dries up and traders withdraw tokens from the platform while US regulators clamp down on the company and its owner. ![]()
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