Cryptocurrency exchange Binance.US has recently encountered a number of legal and financial hurdles amid increased regulatory scrutiny. However, in an effort to restore reliable dollar inflows, the exchange has allied with MoonPay, a payments startup known for its partnerships in the non-fungible token (NFT) space, according to Bloomberg.
This strategic partnership addresses the challenges faced by Binance.US while injecting new vitality into its operations.
Binance.US Banking Challenges and MoonPay Partnership
Multiple banking partners severed ties with Binance.US, leaving customers unable to deposit and access U.S. dollars for over a month. MoonPay will now become another way for Binance.US users to exchange dollars for cryptocurrency.
According to the report, customers can purchase Tethers using a debit or credit card, Apple Pay, or Google Pay, and then use Tethers to purchase other crypto tokens available on the Binance.US platform.
According to Bloomberg, Binance.US confirmed the immediate availability of this option in a recent email to users.
Likewise, MoonPay CEO Ivan Soto-Wright assured that his company will conduct rigorous Know Your Customer (KYC) compliance checks for Binance.US users.
MoonPay complies with regulatory rules in all jurisdictions in which it operates, providing a seamless and compliant experience for users looking to top up their wallets.
In June, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance.US and its global affiliate Binance.com, alleging multiple violations of securities laws.
Although Binance.US, Binance.com, and founder Changpeng Zhao (CZ) disputed the allegations, the platforms have seen a massive exodus of customers.
The SEC noted that at the time of the lawsuit, Binance.US managed more than $2 billion in customer crypto assets. Subsequently, the platform’s liquidity declined and its market share shrank, leaving it marginal compared to U.S. competitors Coinbase Global and Kraken.
In response, BAM Trading, the operating company of Binance.US, recently filed for a protective court order from the SEC, claiming that the regulator’s requests for information were overbroad and overly burdensome.
The order seeks to limit the SEC’s testimony to BAM employees, including its CEO and CFO. Binance stressed that there is no evidence of any misuse or loss of customer assets.
Despite these setbacks, Binance.US’s partnership with MoonPay offers a potential solution to the platform’s banking challenges and provides users with an alternative method for converting U.S. dollars into cryptocurrency.
As the exchange faces regulatory hurdles, including an ongoing SEC lawsuit, its goal is to restore customer confidence and regain a competitive position in the U.S. crypto market.
BNB is trending down on the daily chart. Source: BNBUSDT on TradingView.com
Binance Coin (BNB) is experiencing a prolonged downtrend that has been ongoing for the past 30 days. The coin is trading at $208.3, down more than 1% in the past 24 hours and more than 15% in the past 14 days. #币安 #欧元