Binance US, the American subsidiary of cryptocurrency exchange Binance, has recently announced the removal of over 100 advanced trading pairs and paused its over-the-counter (OTC) trading portal. This decision comes in response to legal pressure from the U.S. Securities and Exchange Commission (SEC) and the recent freezing order imposed on its assets. The move has raised concerns among users, although Binance US has reassured them that their assets remain safe on the platform.

Reasons for Pair Removals and OTC Trading Pause

While Binance US has not explicitly stated the reasons for the sudden removal of these trading pairs, it aims to comply with the regulatory demands from the SEC. The SEC has been scrutinizing the operations of Binance US and its international parent company, and this recent legal action has led to the removal of pairs such as AAVE/USDT, COMP/USDT, EOS/USDT, and BCH/BTC. The changes are set to take effect at 12 pm EDT on June 8, with normal processing of deposits and withdrawals continuing.

The removal of these trading pairs brings down the supported “convert” trading pairs on the platform to 226. However, Binance US has made no indication of bringing back these delisted pairs in the future. Additionally, the OTC trading desk, which allows users to trade large amounts of cryptocurrency directly with the exchange, is currently paused. The exchange has assured its users that it will notify them when the OTC trading option becomes available again in the upcoming weeks and months.

SEC Freezing Order and Repatriation of Customer Assets

The SEC initiated legal action against Binance US and its parent company, issuing a restraining order to freeze their assets. This action followed the SEC’s lawsuit, which comprised a comprehensive 136-page document outlining alleged violations by the exchange. Binance US was also directed to repatriate all fiat currency and digital assets held on its platform within 10 days of receiving the restraining order. This requirement included assets related to its staking-as-a-service program, a program similar to Coinbase’s equivalent, which the SEC targeted simultaneously.

The SEC’s filing specifically emphasized the need to place all customer assets back under the control of Binance US, rather than being controlled by Binance or its CEO, Changpeng Zhao. Although Binance US and Binance are intended to operate as independent entities, the SEC alleged that billions of dollars from both platforms were “commingled” within an entity owned by Zhao, known as Merit Peak Limited. To address this, the SEC’s filing ordered the removal of Binance, Zhao, and any Binance entities as authorized signatories or individuals with control over customer assets within five days of the restraining order. Within 30 days, all customer funds must be held in wallets controlled by new private and administrative keys.

The post Binance US Delists 101 Trading Pairs Following SEC Freezing Order appeared first on Crypto Academy.

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Filed under: Bitcoin - @ June 8, 2023 2:14 am