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Binance.US Halts Trading Services Amid SEC Legal Battle

Cryptocurrency Exchange Temporarily Suspends Trading Pairs and Implements Transaction Limits

Fri, 09 Jun 2023, 00:17 am UTC

Amidst another wave of regulatory turbulence in the cryptocurrency industry, Binance.US took notable action on June 7 in response to a legal battle initiated by the United States Securities and Exchange Commission (SEC) against the exchange. The cryptocurrency exchange decided to halt trading services for a selection of its offerings.

This strategic move significantly impacts a wide array of trading pairs, including over 90 pairs with Tether (USDT), eight with Bitcoin (BTC), and two involving Binance USD (BUSD). However, Binance.US has assured users that deposit and withdrawal services will continue unaffected. A representative from Tether suggested that this decision might be a preemptive measure for non-USDT tokens that the SEC could potentially classify as securities.

The exchange clarified that USD conversions will still be processed, but there is now a new transaction ceiling. The upper limit for buy, sell, and convert transactions has been set at $10,000. In addition to these changes, Binance.US has indefinitely closed its over-the-counter (OTC) trading platform, leaving users uncertain about its potential reopening.

These developments unfolded shortly after the SEC filed a lawsuit against Binance on June 5. The cryptocurrency exchange was accused of offering unregistered securities, resulting in a total of 13 charges, including illicit offers and sales of the BNB and BUSD tokens, their Simple Earn and BNB Vault products, and their staking program.

The SEC's lawsuit also highlighted Binance's failure to register its platform as either an exchange or a broker-dealer clearing agency. Just 24 hours after the legal action against Binance, the SEC turned its focus to Coinbase, leveling similar allegations and classifying some of its popular crypto offerings, such as SOL, MATIC, and The Sandbox (SAND), as securities.

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