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Major cryptocurrency exchange Binance says it has reached an agreement with the United States Securities and Exchange Commission (SEC) to continue operating in the United States. The Securities and Exchange Commission took Binance to court a few weeks ago, and according to the new agreement, Binance can continue its activities without any problems until the case is settled.
The US Securities and Exchange Commission believes that Binance and its founder (Changpeng Zhao Or C.Z) have illegally increased the volume of transactions and consolidated clients’ assets. According to the law, American investors must trade in the American branch of Binance, but apparently Binance has not been able to prevent them from operating in the international service.
According to AndroidThe SEC was trying to freeze all Binance assets in the US until the case was resolved. This regulatory body said the freezing of Binance’s assets is necessary to protect customers’ capital and prevent money from being transferred to accounts outside the United States. Binance said the asset freeze would force the company out of the all-important US market.
After a lot of back and forth, the judge in charge of the case finally announced in a ruling that Binance and the Securities and Exchange Commission must reach an agreement in order to protect the assets of the customers.
The SEC says Binance has agreed to move all assets belonging to US customers into the country. In addition, Binance’s international branch and CZ are not allowed to access or control the assets in the US branch.
Thus, until the case is resolved, the American branch of Binance (Binance.US) is only allowed to transfer money in order to pay expenses or comply with its legal obligations. Binance is required to create new wallets for customers that international employees will not be allowed to access.
The agreement between Binance and the US Securities and Exchange Commission must be approved by a judge Amy Berman and even if it is implemented, it will not finish the case opened by this commission. The Securities and Exchange Commission says that American customers can withdraw all their assets from Binance while the case is pending.
The Binance case is just a small part of the US government’s larger project to crack down on the crypto industry. At the end of last year, the US Securities and Exchange Commission Sam Bankmanfried, accused the CEO of the bankrupt FTX exchange of several counts of fraud. A day after the filing of the Binance case, we also saw a complaint against Coinbase. Coinbase is the largest cryptocurrency trading platform in the United States.
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