Binance.US restores USD services nearly 2 years after SEC crackdown

Binance.US, the American affiliate of global cryptocurrency exchange Binance, has reinstated US dollar deposits and withdrawals after nearly 18 months of restrictions.

The company attributed this decision to increased regulatory clarity.

According to a February 19 announcement, Binance.US customers can now deposit and withdraw US dollars via bank transfers (ACH).

The platform stated, “This means you can deposit and withdraw USD by linking a bank account, buy crypto via bank transfer (ACH), and enjoy trading on USD pairs.”

The company noted that these services would be introduced gradually to all eligible customers over the coming days.

With the return of USD services, Binance.US will also reinstate trading for multiple USD pairs.

Initially, the exchange will support ten pairs, including BTC/USD, ETH/USD, SOL/USD, and ADA/USD, with additional pairs to be introduced over time.

Binance and SEC

The resumption of USD transactions follows a series of legal and regulatory challenges faced by Binance.US.

In June 2023, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance, alleging that it had failed to register Binance.US as an exchange.

Shortly after the lawsuit was filed, Binance.US suspended US dollar deposits.

The SEC’s lawsuit against Binance and its founder, Changpeng “CZ” Zhao, accused the company of regulatory violations and the misappropriation of user funds.

The complaint also alleged that Binance had not registered its global platform, Binance.com, or its US entities, Binance BAM Trading, as an exchange or broker-dealer clearing agency.

CZ was named in the lawsuit as a “controlling person.”

In response to the SEC’s legal action, Binance.US announced on June 9, 2023, that it was taking measures against what it described as “extremely aggressive and intimidating tactics” from the regulator.

In October 2023, Binance.US updated its terms of service, confirming that it would no longer support US dollar transactions. The company had previously indicated in June that it was shifting toward a crypto-only business model.

In November 2023, Binance faced additional legal challenges when it was charged with violating anti-money laundering laws. CZ also agreed to step down as CEO of Binance and pay a $50 million fine as part of a guilty plea to US federal charges.

The company agreed to pay a $4.3 billion settlement, one of the largest criminal fines in history.

As part of the agreement, the US Treasury Department required Binance to implement extensive compliance measures, including a complete exit from the U.S. market.

Although the SEC’s lawsuit against Binance remains ongoing, a Washington, D.C., district judge granted a 60-day stay on February 13, 2024.

Binance and the SEC had jointly requested the pause, citing the SEC’s new crypto task force, which aims to establish a clearer regulatory framework.

The court document noted that “the work of this task force may impact and facilitate the potential resolution of this case.”