Binance.US Halts BUSD Services Amid Investigation
Terrill Dicki Apr 01, 2023 09:00
Binance.US has temporarily halted BUSD services including deposits and withdrawals, and buying, selling, and converting crypto options via the OCBS. The platform is investigating the issue and is also transitioning to new banking and payment service providers, leading to the temporary suspension of certain U.S. dollar deposit services.
In the midst of ongoing global banking turmoil, Binance.US has announced the temporary suspension of some services related to its BUSD stablecoin pairs via the One Common Billing System (OCBS). The suspension affects BUSD crypto deposits and withdrawals, as well as buying, selling, and converting crypto options, according to a status notice on the Binance.US dashboard. The company has stated that it is currently investigating the issue and that the services are "suspended temporarily."
This announcement follows the platform's temporary suspension of Apple Pay and Google Pay deposits on March 30, as the company is transitioning to new banking and payment service providers over the next few weeks. Additionally, Binance.US has also halted debit card deposits for up to 5% of its customers starting from March 30, 2023. However, the platform has assured its customers that it is working to restore all services as soon as possible.
The temporary suspension of BUSD services via OCBS comes at a time when Binance.US' global affiliate, Binance, is facing legal action from the U.S. Commodity Futures Trading Commission (CFTC). The CFTC has filed a suit against Binance and its CEO, Changpeng "CZ" Zhao, for alleged trading violations, citing the exchange's failure to meet compliance obligations by not registering with the regulator.
Binance.US was launched in September 2019 as a separate entity from Binance, which is not available to U.S. users due to local regulations. Catherine Coley, the first CEO of Binance.US, has reportedly enlisted the services of a former federal prosecutor and top cop at the CFTC to represent her in the U.S. government's investigations into Binance.US. Since leaving Binance.US in June 2021, Coley has remained silent about her whereabouts in the media and has not posted anything on her Twitter.
Binance.US' temporary suspension of BUSD services via OCBS is likely a precautionary measure in light of the legal action taken against its global affiliate. As the company investigates the issue and transitions to new banking and payment service providers, customers may experience some disruption in their BUSD-related transactions. However, Binance.US has reassured its customers that it is working to restore all services as soon as possible.
In recent years, Binance has become one of the largest and most well-known cryptocurrency exchanges in the world, but its growth has not been without controversy. The exchange has faced scrutiny from regulators in various jurisdictions, and its relationship with certain governments has been strained due to concerns over money laundering and other illegal activities. Nonetheless, Binance and its affiliates continue to operate and expand their services, with new offerings and features being introduced regularly.
Overall, Binance.US' decision to halt certain BUSD services temporarily is likely a prudent response to the ongoing uncertainty and legal issues surrounding the global cryptocurrency industry. As the company navigates these challenges and works to restore full functionality to its platform, customers can continue to trade and invest in cryptocurrencies with confidence, knowing that their assets are secure and protected.
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