Binance.US Prepares for USD Services Comeback amid Regulatory Shifts

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As a researcher who has closely followed the cryptocurrency landscape over the past few years, I find myself intrigued by the recent developments at Binance.US. The interim CEO Norman Reed’s optimistic outlook for the resumption of USD services is indeed encouraging, especially considering the regulatory challenges they have faced since mid-2023.

By early 2025, Binance.US is set to bring back U.S. dollar services. This significant move comes after the platform has been dealing with limited bank connections since June 2023, a situation caused by increasing regulatory scrutiny.

During a recent interview, Acting CEO Norman Reed made it clear that the restart of fiat trading isn’t a matter of “will it or won’t it,” but rather a case of “when it will happen.

Starting around mid-2023, USD services provided by Binance.US were halted following a lawsuit filed by the SEC under Gary Gensler’s leadership. The complaint targeted issues such as unregistered broker and clearinghouse operations, wash trading, and the intermingling of customer funds with Binance’s global activities. This legal action led to Binance losing licenses in various states and, eventually, restricting its services within the U.S. market after reaching a $4.3 billion settlement with the Department of Justice.

Reed, a previous SEC enforcement officer, characterized the company’s issues as part of what he referred to as “Operation Chokepoint 2.0” – a coordinated attempt by specific US government groups to restrict crypto businesses from crucial banking services. Moreover, recent disclosures have sparked claims that regulatory bodies are deliberately trying to exclude cryptocurrency companies from banking services. Coinbase’s Legal Officer Paul Grewal has emphasized the importance of transparency in these actions.

In spite of the obstacles encountered, Binance.US has persisted in delivering its services to users, currently supporting 160 cryptocurrencies and staking for more than 20 digital assets as proof of the platform’s adaptability. Reed emphasized this resilience, further disclosing that the exchange intends to broaden its custody services and wallet solutions, demonstrating a proactive strategy toward addressing user requirements.

Binance.US Revamped Compliance

It is important to note that Binance.US has recently bolstered its compliance framework to address regulatory criticisms. The company has hired hundreds of former law enforcement and regulatory professionals. It has also implemented robust anti-money laundering (AML) and know-your-customer (KYC) measures, including ID verification and selfie authentication.

Furthermore, the Investigations, Risk, and Compliance departments of Binance.US collaborate closely with both regional and national authorities in support of cryptocurrency probes. They also offer training on blockchain technology.

A More Crypto-Friendly America

Reed’s remarks are particularly relevant now, as the American cryptocurrency community is eagerly anticipating changes within regulatory bodies following the re-election of President Donald Trump, who has shown crypto-friendly tendencies. Already, Trump has made several regulatory appointments with the aim of creating a more welcoming atmosphere for the digital asset sector.

Looking back at the difficulties encountered over the last 18 months, Reed conveyed assurance that there has been no discovery of any misconduct by the SEC. “Having weathered these storms, our aim now is to foster growth in the crypto sector and provide all Americans with the liberty to make their own choices,” he stated, hinting at a fresh start for Binance.US.

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2024-12-19 12:48