Binance.US Plans to Reinstate USD Services by Early 2025
Binance.US plans to reinstate USD services by early 2025 after experiencing restricted banking access since June 2023 due to regulatory pressures. The exchange's interim CEO, Norman Reed, stated that the resumption of fiat trading is a matter of timing.
The suspension of USD services began in mid-2023 when the SEC filed a lawsuit against Binance.US, alleging failure to register as a clearinghouse and broker, wash trading, and commingling customer funds with Binance’s global operations. This led to the loss of operating licenses in several states and restrictions on US market services after Binance settled for $4.3 billion with the Department of Justice.
Reed, a former SEC enforcement official, described the situation as “Operation Chokepoint 2.0,” indicating a coordinated effort by certain US government factions to restrict crypto firms from essential banking services. Recent developments have also raised concerns about intentional debanking efforts against crypto companies, with Coinbase’s Chief Legal Officer Paul Grewal calling for transparency in these actions.
Despite challenges, Binance.US supports 160 cryptocurrencies and offers staking for over 20 digital assets. Reed highlighted the platform's resilience and announced plans to expand custody services and wallet solutions to enhance user experience.
Binance.US Revamped Compliance
Binance.US has strengthened its compliance framework in response to regulatory criticisms, hiring hundreds of former law enforcement and regulatory professionals. The company has implemented robust anti-money laundering (AML) and know-your-customer (KYC) measures, including ID verification and selfie authentication. Additionally, its Investigations, Risk, and Compliance teams collaborate with local and federal agencies on crypto-related investigations and provide blockchain training.
A More Crypto-Friendly America
Reed's comments align with expectations for changes in US regulatory structures following the reelection of crypto-friendly Donald Trump, who has proposed regulatory appointments aimed at fostering a favorable environment for the digital asset industry. Reflecting on previous challenges, Reed expressed confidence that the SEC has found no evidence of wrongdoing and emphasized the goal of empowering Americans with freedom of choice.