Crypto exchange Binance.US has recently encountered many legal and financial obstacles amid heightened regulatory scrutiny. However, to restore a reliable influx of dollars, the exchange has allied with MoonPay, a payment startup renowned for its partnerships in the non-fungible token (NFT) sector, as reported by Bloomberg.
This strategic collaboration addresses Binance.US’s challenges while injecting a renewed sense of vitality into its operations.
Binance.US Banking Challenges And MoonPay Partnership
Multiple banking partners cutting ties with Binance.US have prevented customers from depositing or withdrawing dollars for over a month. MoonPay will now be an alternative means for Binance.US users to convert dollars to cryptocurrencies.
Per the report, Customers can utilize their debit or credit cards, Apple Pay, or Google Pay to purchase Tethers, which can then be used to acquire other available crypto tokens on the Binance.US platform.
According to Bloomberg, immediate access to this option has been confirmed by Binance.US in a recent email to its users.
On the same note, MoonPay CEO Ivan Soto-Wright has assured that his company will conduct rigorous know-your-customer (KYC) compliance checks for Binance.US users.
MoonPay adheres to regulatory rules across all jurisdictions in which it operates, facilitating a seamless and compliant experience for users looking to top up their wallets.
In June, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance.US and its global affiliate, Binance.com, alleging various securities law violations.
While Binance.US, Binance.com, and founder Changpeng Zhao (CZ) have contested the allegations, the platforms have witnessed an exodus of customers.
The SEC noted that Binance.US managed over $2 billion in customer crypto assets at the time of the lawsuit. Subsequently, liquidity on the platform has declined, and its market share has dwindled, leaving it as a marginal player compared to US rivals Coinbase Global and Kraken.
In response, Binance.US’s operating company, BAM Trading, recently filed for a protective court order against the SEC, claiming that the regulator’s requests for information were overly broad and unduly burdensome.
The order seeks to limit the SEC’s depositions of BAM employees, including the CEO and CFO. Binance has emphasized that no evidence suggests any misuse or dissipation of customer assets.
Despite these setbacks, Binance.US’s collaboration with MoonPay offers a potential solution to the platform’s banking challenges and provides users an alternative method to convert dollars into cryptocurrencies.
As the exchange confronts regulatory hurdles, including the ongoing SEC lawsuit, it aims to restore customer confidence and regain its competitive standing in the US crypto market.
Binance Coin (BNB) is undergoing an extended downtrend that has persisted over the past 30 days. The token is trading at $208.3, representing a decrease of over 1% in the last 24 hours and a decline of more than 15% over the past fourteen days.
Featured image from iStock, chart from TradingView.com