Binance.US, the United States arm of the leading global crypto exchange, faces legal and financial challenges amid increased regulatory scrutiny. However, the exchange has partnered with MoonPay, an established payment startup in the non-fungible token (NFT) space, to ensure a steady flow of funds through currency conversion.
Partnership Amid Challenges
Several traditional banks previously collaborating with the exchange have put an immediate stop to their services due to the United States financial regulator’s recent directive. As a result, customers cannot make dollar deposits or withdrawals for an extended period.
This has persisted for over a month, causing user inconvenience. However, a new solution is on the horizon as Binance.US has found an alternative channel in MoonPay.
Hence, its customers in the US who want to convert their dollars into cryptocurrencies will be able to do so seamlessly. To facilitate this process, Binance.US users can use familiar methods such as debit or credit cards and convenient digital payment platforms like Apple Pay and Google Pay to ensure seamless purchase of Tether (USDT).
Furthermore, USDT, a type of cryptocurrency tied to the value of traditional fiat currencies, can be obtained through these channels. These stablecoins can then be used within the Binance.US ecosystem to purchase other crypto assets on the platform.
This allows users to continue trading digital assets despite the disruptions caused by the firm’s banking partner issues. Reports also indicate that the exchange has sent users an email confirming this new option’s immediate availability.
The move demonstrates Binance.US’s commitment to addressing its users’ concerns and providing viable alternatives for them to navigate the evolving cryptocurrency trading landscape.
MoonPay Confirms Regulatory Compliance
Meanwhile, Ivan Soto-Wright, CEO of MoonPay, has emphasized his company’s strict approach to know-your-customer (KYC) compliance checks for Binance.US users. Soto-Wright also stressed the firm’s commitment to upholding regulatory standards in every jurisdiction it operates.
This approach ensures that users who utilize the platform’s services have a smooth experience as they seek to increase their holdings in their crypto wallets. MoonPay aims to provide users with a secure and trustworthy medium to manage their digital assets by adhering to these strict KYC requirements.
In mid-June, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance.US and its global counterpart, Binance.com, alleging a breach of several securities laws. While Binance.US, Binance.com, and their founder Changpeng Zhao (CZ) denied the allegations, the legal issue led to a customer exodus from these platforms.
The regulator’s statement highlighted that Binance.US was responsible for more than $2 billion worth of customers’ crypto assets at the time of the lawsuit’s filing. However, the exchange’s liquidity and market influence declined due to this legal tussle, losing its top spot to other US-based competitors like Coinbase.
In response, Binance.US’s operating entity, BAM Trading, filed a protective court order against the commission. BAM Trading supported its claim by stating that the regulatory body’s information requests were overly broad and imposed undue burdens on their operations.
To briefly stop the regulator’s actions, the court order seeks explicitly to limit depositions made by BAM employees, including the CEO and CFO. Following these setbacks, Binance.US’s partnership with MoonPay hopes to offer a promising solution to the platform’s banking issues.
Thus, users can have an alternative way to convert dollars into cryptocurrencies seamlessly. While navigating regulatory challenges, most notably the ongoing SEC lawsuit, the exchange has shown resilience in its mission to rebuild customer trust and reclaim a competitive foothold in the US cryptocurrency market.
Nevertheless, Binance Coin’s (BNB) price has been experiencing a downtrend over the past month. The token currently trades at $214.45, representing a rise of more than 2.6% in the last 24 hours, but it’s still 10.3% down in the last month, according to current Coingecko data.