Binance.US is suspending trading services for several crypto tokens effective Thursday in response to a lawsuit filed by the U.S. Securities and Exchange Commission.
The lawsuit, which accuses the company and its management of offering unregistered securities, marks an escalation in regulatory scrutiny.
Binance Pulls Back: With the removal of several advanced trading pairs from its platform, Binance.US has created ripples in the crypto community.
"We have also decided to streamline our Buy, Sell & Convert offering and have paused our OTC Trading Portal,” the company said in a statement.
The suspension affects a wide array of trading pairs, including more than 90 tether pairs, eight Bitcoin (CRYPTO: BTC) pairs and two Binance USD pairs.
Users can still carry out deposit and withdrawal operations.
The firm has also pared down the number of supported convert trading pairs, leaving options for a select few cryptocurrencies, including Tether (CRYPTO: USDT), USD Coin (CRYPTO: USDC), Binance Coin (CRYPTO: BNB), Bitcoin, and others like Polygon (CRYPTO: MATIC), Dogecoin (CRYPTO: DOGE), Solana (CRYPTO: SOL), and Avalanche (CRYPTO: AVAX).
Also Read: Aave's GHO Stablecoin To Launch On Ethereum Mainnet With Pivotal Features
Binance.US has placed a cap on trade amounts for buy, sell and convert options at $10,000.
Notably, its over-the-counter (OTC) trading platform has also been taken offline temporarily.
The SEC Case: The SEC’s lawsuit is based on multiple charges against Binance, ranging from unregistered offers and sales of BNB and BUSD (CRYPTO: BUSD) tokens to allegations regarding its Simple Earn, BNB Vault products and its staking program.
The regulator argues that Binance failed to register its Binance.com platform appropriately.
This lawsuit comes hot on the heels of similar allegations leveled against Coinbase Global Inc. (NASDAQ: COIN), another crypto exchange giant, highlighting the SEC's increasing focus on the rapidly evolving digital asset sector.
Read Next: Countdown Begins: SEC Has Just 7 Days To Explain Coinbase Decision Delay
Photo via Shutterstock.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
