Facing regulatory hurdles, Binance.US has pivoted to a crypto-centric model, sidelining USD in favor of USDT as its primary asset. This strategic shift comes in the wake of the SEC lawsuit, which led to banking partners cutting off USD channels.
To enhance user experience, Binance.US has rolled out an improved Buy & Sell Crypto feature on its mobile app. This allows users to transact across over 150 cryptocurrencies using USDT, providing a dependable substitute for USD.
To further this initiative, Binance.US has teamed up with payment service MoonPay. This collaboration will enable users to fund their USDT balances using diverse payment options such as debit/credit cards, Apple Pay, and Google Pay.
The transition to a crypto-only model was necessitated by mounting regulatory pressures. The SEC’s allegations of securities law violations resulted in banking partners halting USD channels. This disruption affected withdrawals, halted USD deposits, and initiated the delisting of USD trading pairs on the platform.
Despite these setbacks, Binance.US has continued its crypto services, including trading, staking, and deposits. Most delayed USD withdrawals were addressed in June, with the platform suggesting users switch their USD to stablecoins.
The introduction of the Buy & Sell Crypto feature underscores Binance.US’s adaptability amidst regulatory challenges. By embracing USDT, the platform ensures uninterrupted crypto services for its users.
MoonPay, a payment startup, is aiding Binance.US users in transitioning from dollars to crypto after the exchange ceased USD deposits in June, as reported by Bloomberg. Users can now purchase the stablecoin tether (USDT) using various payment methods and then exchange it for other crypto tokens.
MoonPay’s CEO, Ivan Soto-Wright, emphasized the company’s adherence to regulatory standards, including KYC procedures, in a Bloomberg TV interview.
Binance.US’s decision to halt dollar deposits came after its ties with several banks were severed due to the SEC’s legal action, accusing it of running an unregistered securities exchange.
While Binance.US’s 24-hour trading volume stands at approximately $10.5 million, competitors like Coinbase and Kraken boast volumes of around $1.15 billion and $500 million, respectively. However, Binance.US operates exclusively in the U.S., unlike its global counterparts.
Binance.US, which asserts its independence from the globally dominant Binance exchange, has faced increased scrutiny. Binance founder, Changpeng “CZ” Zhao, who also chairs Binance.US, reportedly considered closing the U.S. branch due to these challenges.
