December 19, 2024
Binance.US has announced plans to re-introduce USD services in early 2025, marking a major operational shift after a long period of limited access to banks.
The move comes amid growing optimism about potential changes to cryptocurrency policies in the United States, and marks a pivotal moment for the exchange after a turbulent year.
Binance.US to Resume USD Services in 2025
A recent blog post from Binance.US announced plans to bring back USD services in early January. Interim CEO Norman Reed highlighted the significance of the move, calling the fiat services “the most requested and anticipated” by users.
“While I can’t provide a specific launch date yet, let me be clear: it’s not a matter of if, it’s a matter of when,” Reed said.
The platform operates as a separate entity from Binance under BAM Trading Services to comply with US regulations. It halted fiat trading in 2023, a decision that came amid civil lawsuits from the US Securities and Exchange Commission (SEC).
This lawsuit and allegations of financial misconduct led to the suspension of USD deposits and withdrawals. Since then, Binance.US has faced intense regulatory scrutiny and limited banking capabilities.
Despite this, the exchange has maintained stable operations, supporting over 160 cryptocurrencies and offering staking services for over 20 assets. According to Reed, the staking service outperforms competitors.
However, much of the regulatory pressure has been attributed to a deliberate effort by the outgoing administration to restrict cryptocurrency companies’ access to banking services, known as “Operation Throttle Point 2.0.”
The issue gained attention after Paul Grewal, Coinbase’s chief legal officer, highlighted letters between the FDIC and affiliated banks that suggested a deliberate intent to remove banks from cryptocurrency businesses.
However, after “surviving” 17 months of SEC scrutiny, Reed expressed confidence in Binance.US’s compliance record. Notably, the scrutiny included extensive questioning and document requests.
“Now that we have survived, our goal is to help cryptocurrency thrive and empower all Americans with freedom of choice,” he said.
Binance Global Remains Cautious
Binance.US is working on new partnerships to expand its custody and wallet services alongside restoring fiat capabilities. The move could revitalize the exchange’s user base and restore confidence among US investors.
While Binance.US plans to restore USD services, Binance’s global operations remain cautious about re-entering the U.S. market. Bitcoin CEO Richard Teng recently called such discussions “premature” in an interview with Bloomberg.
Ting noted that Bitcoin's main focus is global expansion and attracting institutional investors, sovereign wealth funds, and high-net-worth individuals to the crypto space.
“Whether we re-enter the U.S. market, I think that's a premature discussion,” he said.
The comments come after Bitcoin settled for $4.3 billion with the Department of Justice (DoJ) over allegations of sanctions violations, money laundering, and acting as an unlicensed money transmitter. Despite the challenges, Ting stressed the company’s commitment to compliance.
“I think compliance is the way to go,” he said. “Because regulations will be much clearer around the world, we can invest significantly in compliance. I want to make full compliance a competitive advantage.”
Broader questions remain about the regulatory environment in the United States and how it could shape the future of cryptocurrency companies as they operate in the country. Following Donald Trump’s victory, there is potential for policy changes.
Binance.US’s ability to successfully re-establish USD services could serve as a litmus test for the viability of cryptocurrency platforms within the US regulatory space.