Binance.US Restores USD Fiat Services Amid Regulatory Challenges
In a significant development for the cryptocurrency landscape, Binance.US, the regulated exchange catering specifically to American customers, has successfully reinstated its US dollar fiat services. This comes after a challenging period during which the firm faced substantial restrictions on its ability to manage USD deposits and withdrawals, largely attributed to regulatory pressures from the Biden administration.
Starting Wednesday, access to these fiat services will be rolled out gradually to all eligible customers. As per the announcement from Binance.US, users can now deposit and withdraw USD without incurring any fees through bank transfers (ACH). Additionally, customers can continue to buy, sell, convert, and trade over 160 cryptocurrencies, as highlighted in the company’s press release.
The regulatory atmosphere has been particularly intense, driven by an aggressive approach from the Securities and Exchange Commission (SEC), led by Chair Gary Gensler. Following the collapse of FTX, the SEC took a hard stance against Binance.US, implying that the exchange was involved in misconduct. This scrutiny led to a drastic decline in the firm’s operations, forcing it to cut its workforce by 70% and pivot to a crypto-to-crypto only exchange model from July 2023 until now, resulting in substantial losses in business.
Christopher Blodgett, Chief Operating Officer of Binance.US, shared insights during an interview, stating, “Before we lost fiat, we were neck and neck with Kraken, vying for the position of the second or third largest US exchange. However, we have significantly regressed due to what some refer to as Operation Chokepoint 2.0, along with the SEC’s aggressive actions.” He emphasized the firm’s resilience, noting, “We’ve made some very hard but healthy decisions regarding our cost structure and have never been leaner, meaner, or more prepared to deliver an excellent product at a reasonable price – and today marks that pivotal moment.”
Blodgett also indicated that Binance.US has established several banking partnerships as part of its strategy to reintroduce fiat services, although the names of these partners were not disclosed at this time. It’s important to note that while Binance.US is affiliated with the global Binance platform, it operates as a distinctly separate entity within the U.S. market.
