Binance.US, the American subsidiary of Binance, announced on August 23 its new USD on-ramp launch in partnership with financial technology firm MoonPay. This strategic move will enable local customers to conveniently deposit and withdraw USD.
To wit,
“As Binance.US completes its transition to a crypto-only exchange, we’ve replaced USD with USDT, a stablecoin pegged to the U.S. dollar, as our new base asset for transactions.”
The exchange aims to re-boost it with a new partner two months after problems with its USD on-ramps.
Specifically, clients can top up their accounts using debit cards, credit cards, Google Pay, and Apple Pay, to buy USDT and buy, sell, and trade more than 150 cryptocurrencies on the exchange.
The services are available to Binance.US customers in all supported states, excluding Louisiana.
No Stopping Binance
MoonPay imposes a minimum purchase order amount, typically around $30, according to Binance’s post. Additionally, there is a standard purchase fee of 3.49%.
However, it’s essential to be aware that fees may vary based on the payment method you choose. Moreover, there could be additional fees associated with transferring USDT from your MoonPay account to your Binance.US account.
The announcement came two months after the US exchange confirmed its problem with USD on-ramps. In June, Binance.US had to halt USD deposits and withdrawals following a legal battle with the Securities and Exchange Commission (SEC).
Additionally, a number of US banks reportedly planned to stop providing on-ramp services to Binance. As a result, Binance advised users to withdraw USD. This made it difficult for US customers to buy and sell cryptocurrency on Binance.
The US SEC previously proposed to block Binance Holdings officials from accessing Binance US infrastructure. The federal decision is still pending.
The SEC’s proposal is part of a broader crackdown on cryptocurrency exchanges by US regulators. The SEC has alleged that Binance Holdings violated US securities laws by operating an unregistered securities exchange.
Binance Faces New Challenges
Since the beginning of this year, Binance has been under intense scrutiny from regulators around the world. The prominent crypto exchange was recently accused of repeatedly violating sanctions against Russia.
According to the Wall Street Journal, Binance volunteers, commonly known as Binance Angels, announced via Telegram that the exchange imposed no trading restrictions on Russian customers.
Last year, Binance imposed tight restrictions on Russians with assets exceeding €10,000. However, on April 25, Binance removed these restrictions. The news claims this was a deliberate attempt to violate sanctions against Russia.
This information comes in the context of Binance being in legal trouble in Western countries. In early May, the exchange was investigated by the US Department of Justice for its Russia-related activities.
Additionally, in recent months, Binance has withdrawn from the German, Austrian, Belgian, and Dutch markets. The French government is also investigating Binance for possible financial crimes.
Binance Says Not Guilty
Binance denied the allegations, saying it complies with all applicable laws and regulations. Denials are not new from the company, which is facing pressure in many nations.
But negative news keeps hitting. John Stark, former Chief of the SEC Office of Internet Enforcement, recently called the SEC to investigate Binance. He expressed concerns about the Binance audit, pointing out several inconsistencies.
These include the selection of Mazar as the auditing entity rather than a more prominent audit firm, as well as the potential absence of publicly disclosed terms governing the audit process.
Binance’s Proof-of-Reserves has been a controversial topic. Upon examining Binance’s financials last year, the report revealed a deficit of $245 million in Binance’s asset-to-liability balance.
Interestingly, Binance’s auditors have attributed this anomaly to excluding collateral holdings for Bitcoin lending from the audit’s purview, citing difficulties in conducting comprehensive statistical analysis.