Binance will prohibit US residents from withdrawing funds outside the country

The world’s largest crypto exchange Binance, its American division Binance.US and the US Securities and Exchange Commission (SEC) have entered into an agreement according to which the funds of the exchange’s American customers will be prohibited from withdrawing outside the United States until the completion of the regulator’s lawsuit against the trading platform. About it writes Reuters.

The agreement provides that employees of the parent company of the exchange, Binance Holdings, will not have access to keys for crypto wallets, they will also not have administrative rights to the division’s services in Amazon Web Services, etc. Only Binance US employees will have access to all these tools. The agreement must be approved by a federal judge for it to take effect.

The SEC sued the crypto exchange on June 5. The commission accused Binance Holdings Ltd., its US division and the founder of the exchange, Zhao Changpeng, of violating securities laws. According to the SEC, Binance did not register as an exchange or broker, creating excessive risks for investors and depriving them of their protection.

The commission also issued an order to freeze Binance US assets, after which the exchange had to stop working with deposits in dollars. The company, in a statement, assured that it would “vigorously defend” the platform from SEC abuse and fight the regulator using all the possibilities of legislation. June 14 D.C. District Court refused block the assets of the Binance crypto exchange.

In addition, the SEC filed a lawsuit against the Coinbase crypto exchange, making similar accusations: the lawyers of the American regulator are sure that since 2019 the exchange has “earned billions of dollars, illegally facilitated the purchase and sale of cryptoassets.”