The Securities And Exchange Commission has filed lawsuits against cryptocurrency exchanges Coinbase and Binance for allegedly violating multiple securities laws. Photograph: Justin Sullivan/Getty ImagesThe American branch of Binance, the giant cryptocurrency exchange, said late Thursday that it would no longer allow customers to trade on its platform using US dollars, after its banking partners cut the firm off in response to a crackdown by federal regulators.
The move is a major blow to Binance. US, the American arm of the world’s largest crypto exchange. One of the main functions of an exchange is allowing users to convert their traditional money into digital currencies like bitcoin or ether. Binance will no longer be able to offer that service in the United States.
In a message to customers, Binance. US said it was “taking necessary actions as we transition to a crypto-only exchange.” In recent days, the company said, its banking partners have signalled that they will no longer facilitate the movement of dollars on and off Binance. US’ platform. The announcement comes after the Securities and Exchange Commission sued Binance on Monday, accusing the firm and its CEO, Changpeng Zhao, of mishandling customer funds and lying to regulators. In a separate filing, the SEC asked a federal judge in Washington to freeze assets related to US-based customers of Binance, citing “the defendants’ years of violative conduct.”