Binance.US set to be cut off from banking system after SEC lawsuit
American Banker The Binance logo on a smartphone arranged in the Brooklyn borough of New York, US, on Tuesday, Feb. 14, 2023. The New York State Department of Financial Services said it had directed Paxos Trust Co. to stop issuing new tokens of crypto's third largest stablecoin, a Binance-branded coin known as BUSD that has roughly $16 billion in circulation. Photographer: Gabby Jones/Bloomberg
Gabby Jones/Bloomberg
(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 U.S. regulators clamp down on the company and its owner.
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. 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.
