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Binance’s US arm announced plans to carry on US dollar
services next, according to a statement by the firm’s interim CEO Norman Reed.
The company was forced to halt direct US dollar withdrawals last year in a step
that resulted from a series of regulatory actions by the US Securities and
Exchange Commission (SEC).
Binance.US was embroiled in legal disputes with the
SEC, including state-level regulatory challenges, which led to operational
setbacks. But now, the company is optimistic about forging a road to recovery
in 2025.
SEC Lawsuit
Additionally, Binance.US aims to enhance its
platform’s value by maintaining low fees, offering zero-fee Bitcoin trading,
and expanding support for staking assets.
“Many of you have been asking when USD will
return. While I can’t provide a definitive launch date yet, let me be clear: It
is not a matter of if, but when. As I’m writing this, we are closer than ever
to restoring USD services, and our plan is to achieve this important milestone
in early 2025,” Reed wrote.
Despite current challenges, he expressed confidence in
digital assets becoming integral to the mainstream financial ecosystem in the
US and globally. He also welcomed Paul Atkins’s nomination as the next SEC
Chair, hoping for a more balanced regulatory approach.
With 2025 on the horizon, our teams are hard at work building a comeback story for the ages.Norman Reed, our Interim CEO, reflects on the past year and shares his outlook for 2025—including a small update on USD services.Learn more 👇https://t.co/BvbGGosSlg pic.twitter.com/d0ZXxXUKuc
— Binance.US 🇺🇸 (@BinanceUS) December 18, 2024
In June 2023, the SEC filed a lawsuit against
Binance.US, alleging unlicensed securities exchange operations and raising
concerns about investor protection. The exchange was forced to halt fiat
transactions, effectively transitioning to a crypto-only platform.
The SEC’s scrutiny intensified over the custody
platform Ceffu, rebranded from Binance Custody, amid allegations it facilitated
moving US customer funds abroad.
Regulatory Hurdles in the US
However, Binance.US firmly denied using Ceffu, with
CEO Changpeng Zhao publicly stating that Binance.US does not use and has never used Ceffu or Binance Custody. Conflicting statements from the
exchange’s legal team fueled the controversy, adding to the regulatory tension.
In addition to the SEC’s actions, Binance.US faced state-level regulatory setbacks, consequently losing its money transmitter
license in seven states, including Florida and North Dakota. State agencies
cited the exchange’s failure to meet qualifications, emphasizing the need to
protect citizens from unlawful practices.
Additionally, Binance.US paused new user onboarding in
several states and reportedly remains unlicensed in major markets like New York
and Texas. Looking ahead, Reed outlined a vision focused on
restoring USD services as a top priority for its customers. Although no
specific launch date has been provided, he assured users that the return of
fiat capabilities is imminent.
This article was written by Jared Kirui at www.financemagnates.com.
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