Cryptocurrency trading, staking, deposits and withdrawals will continue to operate fully, Binance said.
Binance's banking partners are preparing to pause fiat withdrawal channels as early as June 13.
Cryptocurrency exchange Binance.US is preparing its banking partners to suspend fiat dollar withdrawal channels starting June 13, just days after U.S. regulators sued Binance and CEO Changpeng Zhao. and announced on Thursday that it would suspend U.S. dollar deposits.
The U.S. arm of the world's largest cryptocurrency exchange tweeted at 10:33 PM EDT (0233 GMT) on Thursday that the move comes as it is taking “active steps” to transition to a cryptocurrency-only exchange for the time being. Yes. .
Cryptocurrency trading, staking, deposits and withdrawals will continue to operate fully, the exchange informed customers.
On Monday, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its founder Zhao, followed a day later by suing Coinbase (COIN.O), the largest U.S. cryptocurrency platform.
The developments mark a dramatic escalation in U.S. regulators' crackdown on the industry following the collapse of FTX last year.
Earlier Thursday, U.S. financial regulators said they supported freezing Binance's assets, according to a federal court filing from the U.S. SEC.
“Binance.US is a fairly small company compared to international groups. The suspension of withdrawals will certainly cause or trigger significant worry and fear,” said Matthew Dibb, COO of Singapore cryptocurrency platform Stack Funds.
“But over the past week, Binance has been hit with different types of comments and issues from the SEC and regulators, so this was really expected.”
Binance.US tweeted that the SEC's stance on cryptocurrencies was “very aggressive and threatening,” adding that it had caused difficulties between the exchange and its banking partners.
“This is going to be a long fight. It's not going to be sorted out in the next two or three months. It's probably going to take years,” Dibb said.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)