Binance and the SEC Strike Deal to Move All US Customer Funds Back Onshore

June 17, 2023 Elijah Lucas Cryptocurrency News 0

BNB Crashes 9% After Binance Faces Lawsuit

The world’s largest cryptocurrency exchange, Binance, has reached a deal with the Securities and Exchange Commission (SEC) to move all US customer funds back onshore. The deal, which was announced on Saturday, comes after the SEC filed a lawsuit against Binance in September 2022, alleging that the company had violated US securities laws by offering and selling unregistered securities to US customers.

Under the terms of the deal, Binance will create a new US subsidiary, Binance.US, which will be responsible for all of the company’s operations in the US. Binance will also pay a $100 million fine to the SEC.

In addition, Binance has agreed to move all US customer funds back to US-based banks and financial institutions. The company has also agreed to give the SEC access to its books and records, and to cooperate with any future investigations.

The deal is a major victory for the SEC, which has been cracking down on cryptocurrency exchanges that operate without proper registration. The deal is also a sign that Binance is taking steps to comply with US securities laws.

The deal is likely to have a significant impact on the cryptocurrency industry. It sends a message to other cryptocurrency exchanges that they need to comply with US securities laws, or they could face similar legal action. The deal could also make it more difficult for US residents to use Binance, as the company will no longer be able to offer its services to US customers directly.

Overall, the deal is a positive development for the cryptocurrency industry. It shows that the SEC is willing to work with cryptocurrency companies to ensure that they comply with US laws. It also sends a message to the broader financial community that cryptocurrencies are here to stay, and that they will be subject to the same regulatory scrutiny as other financial products.

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About Elijah Lucas 180 Articles
Elijah has done a Master in Computer Science. Elijah is a passionate blogger, technology lover, plays chess, is innovative, likes to express their views via the blog, and is a music lover. Elijah has been blogging since 2011 and has contributed several excellent articles to the internet.

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