In a move to bring back dollar transactions for US customers, Binance.US, the American subsidiary of the world’s largest cryptocurrency exchange, has inked a new partnership deal with crypto payments startup MoonPay.
Binance.US, which is in an ongoing legal battle with the Securities and Exchange Commission (SEC), suspended USD deposits for users in the United States following the departure of its banking partners.
Binance.US and MoonPay
In a blog post on Tuesday (Aug. 22, 2023), Binance.US said the partnership with MoonPay will enable customers to buy and sell supported crypto assets on the platform using USDT, the largest stablecoin by market capitalization issued by Tether.
The MoonPay integration also allows Binance.US users to conveniently make USDT purchases with debit Apple Pay, credit card, debit card, and Google Pay. According to the blog post, USDT will replace USD as the exchange’s “base asset for transactions.” Meanwhile, in its MoonPay FAQs (frequently asked questions), the crypto exchange noted that it would continue to remain a crypto-only platform for the time being.
As previously reported by CryptoPotato, Binance.US suspended USD deposits on its platform for American clients in June 2023 after revealing that its banking partners in the United States were severing ties with the crypto exchange.
The company attributed the development to the SEC’s “aggressive and intimidating tactics” against the American crypto industry, which Binance.US said posed challenges for its third-party banking partnerships. Meanwhile, Bloomberg reported that the exchange said there were still “banking partners that allowed the company to hold customers USD,” without mentioning any names.
Dealing With Regulatory Hurdles in the US
Binance.US and its international affiliate Binance.com were hit with a lawsuit by the SEC on June 5, 2023, with the regulator alleging that the entities violated securities laws. The regulator requested the court to freeze all assets on Binance.US, stating that the company had the tendency to commingle users’ funds and transfer them offshore.
However, the judge in charge of the case denied the request and asked both parties to reach a deal that would see Binance.US continue operations. The American subsidiary also refuted allegations of mishandling customer funds, arguing that the regulatory watchdog’s accusations and its statement in court were conflicting.
Binance, the global crypto exchange, and CEO Changpeng Zhao are also facing a lawsuit from the Commodity Futures Trading Commission (CFTC). In July, the company filed for dismissal of the CFTC case, stating that both Binance and Zhao are outside the jurisdiction of the CFTC and any other US regulator.
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