ALBAWABA- In the crypto recap this week, major changes have impacted crypto exchanges as Binance .US has suspended USD deposits and announced a forthcoming pause on fiat withdrawals, citing increased regulatory scrutiny. Meanwhile, Crypto.com has decided to discontinue its institutional services in the US, shifting its focus to retail users. These developments reflect the evolving landscape of the industry and the challenges faced by exchanges in navigating regulations and market conditions.
US SEC sues Binance, Coinbase crypto crackdown
Binance and Coinbase are facing fresh lawsuits from the U.S. Securities and Exchange Commission (SEC) as part of its ongoing crackdown on cryptocurrency businesses. On June 5, the regulator filed 13 charges against Binance, accusing them of engaging in unregistered offerings and sales of tokens, as well as failing to register as an exchange or broker-dealer. Similarly, the SEC targeted Coinbase on similar grounds, claiming that certain cryptocurrencies offered by the platform qualify as securities. As a result of these legal actions, trading volume on major decentralized exchanges surged by 444% within hours. Additionally, there has been a significant increase of 183% in SEC enforcement actions related to cryptocurrencies in the six months following FTX's bankruptcy.
Binance.US Halts USD Deposits, Prepares for Fiat Withdrawal Pause Amid Regulatory Pressure
Binance.US has made the decision to temporarily suspend U.S. dollar deposits and has announced an upcoming pause for fiat withdrawals, potentially starting from June 13. The exchange cites the need to take action in response to what it describes as "extremely aggressive and intimidating tactics" from regulators in the United States. However, trading, staking, and deposits and withdrawals in cryptocurrencies are unaffected and continue to operate normally. Binance.US has also delisted eight Bitcoin pairs and two BUSD pairs, while temporarily pausing its OTC Trading Portal services.
Crypto.com Ends Institutional Services in the US, Focusing on Retail Users
In a turbulent month for US cryptocurrency exchanges, Crypto.com has announced the discontinuation of its institutional client services starting June 21. The Singapore-based exchange cited limited demand from institutional customers, further impacted by challenging market conditions, as the main factors behind this decision. However, retail users in the United States will still have access to cryptocurrency derivatives trading and the UpDown Options offering provided by Crypto.com.
