A United States Federal judge for the District of Columbia has granted approval to Binance, the world’s leading cryptocurrency exchange, to invest some of its customer assets in U.S. Treasury bills.
Judge Amy Berman Jackson in a ruling also gave a conditional green light for Binance to transfer cryptocurrency to third-party investment advisers. The transfer is only possible to investment advisers not directly linked to Binance.
Court Ruling Details and Conditions
According to Judge Jackson, Binance’s U.S. operator, BAM is free to invest part of customers’ fiat funds with BitGo, a crypto custody company, into Treasuries. Notably, the treasuries should mature on a four-week basis and no third parties, particularly Binance affiliates, should be involved in the investment process.
The court also instructed BAM to ensure a guaranteed US dollars supply on its platform, sufficient enough to service all customers’ fiat withdrawal demands. Additionally, BAM must amend its terms of use, as well as notify customers.
Binance and its Legal Challenges
Interestingly, Judge Jackson is also presiding over a case between the United States Securities and Exchange Commission, SEC and Binance that was instituted in June 2023. Notably, the case involves the now jailed founder, Changpeng ‘CZ’ Zhao and Binance’s U.S. operator BAM.
Binance has been in the news for over issues bordering on alleged money laundering, running an illegal exchange, unlawful listing of digital assets which ought to be registered as securities among others. However, in recent times, Binance under its new leadership is keen on complying with authorities to avoid negative publicity.
Global Regulatory Challenges and Compliance Efforts
The exchange’s new CEO, Richard Teng seems keen on improving Binance corporate image. Recently, it collaborated with the Macao Judiciary Police to carry out training that involved face-to-face law enforcement, meant to scale up the skills of officers saddled with tackling cybercrime and financial fraud in the cryptocurrencies ecosystem. Binance is also close to finalizing negotiations in the sales of the majority stake in Gopax as part of strict regulatory compliance.
Despite Teng’s effort, the exchange is still having issues with regulatory authorities. For instance, in Nigeria, one of its executives, Tigran Gambaryan is still in detention and battling health issues even as his case lingers. In a recent development, the presiding judge issued a bench warrant on the doctor of the correctional facility.
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