Texts From Crypto Giant Binance Reveal Plan To Elude U.S.

Texts From Crypto Giant Binance Reveal Plan To Elude U.S.

During 2017, Binance skyrocketed to prominence as a cryptocurrency exchange, eventually becoming the largest of its kind in the world. Problems arose fast. It ran mostly out of China and then Japan, but one in five of its customers were in the United States, where regulators have hinted at an impending assault on uncontrolled offshore crypto players. That would protect the larger Binance.com exchange from scrutiny from U.S. regulators, effectively blocking access from the United States. The plan was to create a minimal American platform, Binance.US, which would use Binance’s technology and brand under licence but would otherwise give the impression of being completely separate from Binance.com.

According to interviews, communications, and documents obtained by the Journal, however, Binance and Binance.US have been considerably more connected than the firms have reported, sharing staff, finances, and an affiliated entity that purchased and sold bitcoins. China-based Binance had access to potentially sensitive information about American customers since Chinese Binance developers managed the software enabling Binance.US consumers’ digital wallets. A Binance official warned colleagues in a 2019 private chat that a lawsuit from U.S. regulators would be like “nuclear fall out” for the company and its officers. According to letters and papers from 2018–2020 seen by The Wall Street Journal, as well as interviews with former workers, it appears that Binance, fearing prosecution, set out on a plan to disarm U.S. authorities.

How it all began

On Thursday, a group of lawmakers from both parties demanded answers to a list of questions stating that Binance had “kept basic financial data from its consumers and the public.” Even in nations where it is legal to do so, Binance has found itself in the crosshairs of regulatory authorities. After the failure of several cryptocurrency exchanges last year, including FTX, Binance emerged as the industry leader. In the wake of FTX’s rapid demise, U.S. regulators shifted gears and are making concerted efforts to rein in the $1 trillion cryptocurrency market.

‘Binance.US was formed exclusively to offer U.S. clients with services and goods that comply to U.S. rules and regulations,’ a representative for Binance.US explained. During those early years, we did not have enough compliance and controls in place,” a Binance representative said. Regarding legality, we are a totally different organisation now. How well Binance manages the current industry upheaval and interacts with U.S. regulators will be a barometer of crypto’s long-term viability. Binance’s chief strategy officer, Patrick Hillmann, stated last month that the exchange is prepared to pay fines to end ongoing regulatory and law enforcement probes in the United States.

Binance’s intimate connection

A Binance employee in Shanghai accidentally enabled trading on the U.S. platform a few minutes before the scheduled launch date in September 2019, prompting a discussion in a Binance-specific Telegram group. The Binance.US platform will reportedly continue to have essential software functionalities maintained by developers in Shanghai until at least the summer of 2021. According to the source, the contracts between the Shanghai developers and Binance and not the US platform.

Prosecutors claim that the loss of billions of dollars in customer funds at the defunct FTX platform was caused by an unlawful link between the market and an associated trading firm, Alameda Research. A representative for Binance.US stated that the company does not share user information with Binance and that all customer data for U.S. customers is maintained within the United States. According to the Binance.US spokesperson, “Binance.US has never—and will never—trade nor lend out customer funds,” which is in stark contrast to FTX. When asked about the nature of their partnership, representatives for both Binance and Binance.US referred to licencing agreements governing the use of Binance’s underlying technology.

According to her, Merit Peak’s participation in Binance.US ceased in 2021. The topic of Sigma Chain was not up for discussion. Binance had tremendous growth in its first two years of existence, 2017 and 2018, because it was unbound by government oversight. According to the WSJ, the SEC has also been investigating the connection between Binance.US and Merit Peak Ltd. and Sigma Chain AG, two trading entities with ties to Mr. Zhao. Binance.com was accessible from anywhere in the globe, and users were not required to do the same know-your-customer checks that are standard at banks and brokerages.

Binance’s Asset Shuffling Eerily Similar To Maneuvers By FTX

Binance’s Asset Shuffling Eerily Similar To Maneuvers By FTX

Knowing about the asset shuffling and tips to invest

According to a recent report, Binance allegedly mixed up various investors’ cash last year in a method that was “eerily” similar to what the now-defunct crypto trading FTX did. Late the year before, the largest cryptocurrency exchange in the market shifted $1.8 billion in assets that were to serve as the backing for its users’ stablecoins, Forbes said on Monday, saying that FTX had also engaged in similar actions.

More particularly, despite Binance’s claims that such equipment are fully backed by the gesture they are marked down to, purchasers of more than $1 billion in B-peg USDC tokens—digital copies of USDC that exist on Binance’s exclusive Binance Smart Chain—were left without securities from August 17 to around early December.

The article claims that $1.1 billion of those assets were delivered by Binance to Chicago-based frequent trader firm Cumberland/DRW as protection for the B-peg USDC stablecoins. According to the allegation, Binance might have boosted had its stablecoin BUSD with the money.
The mixing of funds here between now-defunct bitcoin exchange and its trade arm Alameda Studies was a major reason in FTX’s demise. Through a backdoor, Alameda being able to stealthily spend FTX client funds while the loan remained hidden from auditors, workers, and shareholders.

Tips to invest

Despite the fact that cryptocurrency has only recently emerged, it has grown into a vast, complex cosmos that is challenging for beginners to comprehend. Yet, given the price volatility of cryptocurrencies like Bitcoin, there is potential for significant gains—if you can handle the risk.
The ability to invest in well-known cryptocurrencies like Bitcoin has become substantially simpler because to online platforms such as Coinbase and Robinhood. The procedure is still a little trickier than getting a standard money, though. You can attain your cryptocurrency investment goals by developing a financial strategy with the assistance of a financial advisor.

Simply said, you require a location to purchase it and a location to store it. Cryptocurrency exchanges are the most common location to buy cryptocurrencies. There are many exchanges to select from, including Coinbase, GDAX, and Bitfinex being the most well-known. You may use a debit card to buy currencies such as Bitcoin and Ethereum on these platforms. You may purchase parts of a coin using the majority of widely used currencies, including Bitcoin, so users don’t need to put up a sizable sum of money to start playing.

It’s likely that you’ll need to have some Bitcoin or Ethereum to buy any cryptocurrencies you’re engaged in. Generally speaking, fiat currency—what crypto aficionados call paper money like dollars or euros—cannot be used to purchase altcoins. But, that might alter in the future.
Although there are other platforms you may visit to communicate directly with other individuals looking to trade cryptocurrency, exchanges generate money by collecting fees for carrying out transactions. Local Bitcoins is one well-known illustration. The procedure will probably take longer than it would with an interchange, and actually dealing with someone whose money you cannot verify has an additional danger. If you’re unfamiliar with cryptocurrencies, you should probably use an exchange.

For a proportion of your investment, dealing in bitcoins can be an exciting idea, but you need make absolutely sure to diversified your holdings. You could receive asset allocation advice and investment scheme creation assistance from a financial advisor. Hiring a competent financial advisor need not be difficult. Start your search for a financial advisor right away if you’re prepared to do so.
So, this is how you can usually plan in investing in any of the crypto currencies that can be useful in future and you can get returns form it.

Binance to halt US dollar bank transfers

Binance to halt US dollar bank transfers

The biggest cryptocurrency exchange, Binance, recently declared that it will stop accepting withdrawals and deposits from bank accounts that utilize US dollars. The ban will start on Wednesday. The restriction of USD bank transactions on the exchange was not explained by the exchange in any way. The ban would only affect 0.01% of Binance’s clients, the company did note.

So, the understandably wary bitcoin community experienced a tiny degree of fear as a result of this statement All you ought to know about the suspension will be covered in this post. We’ll even speculate on why Binance made the choice it did. All you ought to know about the suspension will be covered in this post. We’ll even speculate on why Binance made the choice it did.

Are USD bank transfers on Binance.US being suspended?

Binance, no. The US is not stopping bank transactions in USD. Just Binance, the foreign version that Americans are not permitted to use, would be affected by this ban.

Keep in mind that Binance.US was created as a distinct legal corporation so that the exchange could join the US market without having to impose more restrictions on its other non-US consumers. Being a significant portion of Binance, it would be troubling if Binance.US prohibited USD bank transactions. US customers make deposits and withdrawals via USD bank transfers. It is seldom employed

Also Read: Binance Coin Rattles the Market with Plan to Halt USD Bank Transfers

In their release, Binance stated that just 0.01% of customers use USD bank transfers on the platform. It makes natural that Binance would halt the service given the low number of users. But Binance did not say that; they only said that since few people use it, their decision to stop it is not a big concern.

If this were the cause, Binance would have most certainly made it clear in its release. Additionally, discontinuing a service because too few people use it is not a good idea. These clients could switch to an exchange that does provide that choice.

Because of these factors, we don’t believe that Binance banned USD bank transactions for just this reason.

Regulatory issues with the US exist for Binance.

We believe that Binance’s regulatory troubles with the United States are the much more likely cause. This information was made public in December 2022 when the Justice Department said it was thinking about prosecuting leaders of Binance for financial offences connected to money laundering and the transmission of illegal monies via Binance.

Because of this, the exchange could reject USD bank transactions. According to the US Justice Department, Binance has often had lax anti-money measures, which have allowed criminals to utilize the exchange to circumvent US sanctions and launder money.

The US government’s stake in the exchange would be significantly diminished by halting all withdrawals from and deposits into USD bank accounts. The US authorities will be interested in an exchange, it is a simple reality if it can be used to withdraw US dollars to a foreign bank account., This explanation would also explain why Binance has not disclosed the cause of the ban.

They don’t want to frighten the market since that might quickly lead to a crash. However, every other way of buying and selling cryptocurrency on the exchange, including deposits and withdrawals in euros, the Binance spokesman stated, will not be impacted. According to the spokesperson, Binance customers will still be able to purchase and trade cryptocurrency using credit cards, Google Pay, Apple Pay, and on the Binance peer-to-peer marketplace.

Also Read: Binance Increases USDC Holdings As BUSD’s Market Cap Slides Lower

The largest cryptocurrency exchange in the world by volume, Binance, caters to a worldwide user base but blocks access to its site for Americans due to regulatory issues. Instead, it refers US users to Binance US, an affiliate that operates a much smaller exchange.

Although Binance rejected to provide an official description, the suspension of USD bank payments is probably due to problems with its bank partner Signature Bank, which said last month that no longer crypto SWIFT transactions would be executed under $100,000.

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Binance Coin Rattles the Market with Plan to Halt USD Bank Transfers

Binance Coin Rattles the Market with Plan to Halt USD Bank Transfers

A brief overview of Binance Coin (BNB)

Binance Coin (BNB) is a cryptocurrency created by Binance, one of the largest cryptocurrency exchanges in the world. BNB is a utility token on the Binance exchange, allowing users to pay for trading fees, listing fees, and other services at a discounted rate. Binance also periodically uses a portion of its profits to buy back and burn BNB tokens, reducing the total supply and potentially increasing its value. Binance Coin has gained popularity and has become one of the top cryptocurrencies by market capitalization due to its usefulness and strong adoption.

Significance of the announcement to suspend USD bank transfers

The announcement by Binance Coin (BNB) to halt USD bank transfers has significant implications for the cryptocurrency industry. The decision has shocked many investors, given the popularity of Binance as a cryptocurrency exchange. The move is expected to rattle the market and may lead to a decline in the value of Binance Coin, at least in the short term.

One of the reasons for the announcement is the increasing regulatory pressure that Binance is facing. The exchange has been scrutinized by regulatory authorities worldwide, particularly in the United States, where it has been accused of facilitating money laundering and other illegal activities. By halting USD bank transfers, Binance may be trying to avoid further regulatory scrutiny and protect itself from potential legal action.

The decision to suspend USD bank transfers may also be an attempt by Binance to shift its focus away from fiat currencies and towards cryptocurrencies. Binance has been promoting the use of cryptocurrencies as an alternative to traditional fiat currencies, and this move may be an indication of its commitment to this vision. By eliminating USD bank transfers, Binance may encourage users to use cryptocurrencies exclusively on its platform.

Overall, the announcement by Binance to suspend USD bank transfers is significant for the cryptocurrency industry. It highlights the increasing regulatory pressure that cryptocurrency exchanges face and may have implications for the broader adoption of cryptocurrencies. The move may also shift the focus of cryptocurrency exchanges away from fiat currencies and towards cryptocurrencies.

Impact of the announcement on the cryptocurrency market

The announcement of Binance Coin’s plan to suspend USD bank transfers has significantly impacted the cryptocurrency market. The news has caused widespread concern among investors and traders, and the price of Binance Coin has already dropped significantly in response.

One of the biggest concerns is the potential impact on liquidity. Many traders and investors use USD bank transfers to buy and sell cryptocurrencies, and the suspension of this service could make it more difficult to move funds in and out of the market. It could result in reduced trading volume and increased volatility, which could have a ripple effect throughout the entire cryptocurrency market.

Another concern is the impact on Binance’s reputation. Binance is one of the world’s largest and most well-respected cryptocurrency exchanges, and any disruption to its services could cause investors to lose confidence in the platform. It could lead to decreased trading volume and a drop in the exchange price of Binance Coin and other cryptocurrencies.

However, some analysts have pointed out that the suspension of USD bank transfers could be a strategic move by Binance to shift its focus towards other payment methods, such as cryptocurrencies and stablecoins. By reducing its reliance on traditional banking services, Binance could increase its efficiency and reduce its exposure to regulatory risks.

Overall, the announcement’s impact on the cryptocurrency market remains to be seen. While the news may spook some investors, others may see it as a sign of Binance’s commitment to innovation and a shift towards more decentralized payment methods. Only time will tell how the market will respond to this news, but one thing is sure – the cryptocurrency industry is always full of surprises, and anything can happen.

Binance Increases USDC Holdings As BUSD’s Market Cap Slides Lower

Binance Increases USDC Holdings As BUSD’s Market Cap Slides Lower

Binance, one of the most popular cryptocurrency exchanges, and Ingenico, a leading payment processor, have joined forces to provide customers in France convenient options for making payments using digital assets. Binance Pay users will soon be able to make cryptocurrency purchases at two establishments using Ingenico’s POS system: the bar La Carlie and the boutique Miss Opéra.

The release says that more than 50 different digital currencies are welcome in the scheme. At first, merchants will only accept cryptocurrency payments; however, a crypto-to-fiat solution that will allow them to accept fiat currency payments is scheduled for pilot in the second quarter of 2023.

Also Read: Binance Announces Users Can Now Buy Crypto Using Apple Pay and Google Pay

Binance plans to expand its services to additional European nations in the near future. Several European countries have given Binance their blessing, including France, Italy, Lithuania, Spain, Cyprus, Poland, and Sweden. In-store terminals don’t often support cryptocurrency usage without integration. Two French retailers, Le Carlie and Miss Opéra, are going live as part of the experimental programme in France.

On February 20th, the cryptocurrency trading platform revealed that the crypto giant had introduced a paid technology platform card in Brazil in partnership with payment giant Mastercard. Bitcoin, Ether, and BUSD are just a few of the 13 cryptocurrencies that may be used with the card. It will be made accessible to all Binance users in Brazil with a valid national ID.

The new device, which is supposed to be a “all-in-one,” will streamline the onboarding process for both businesses and customers. All Binance users in Brazil with a valid national ID will get access to the card, which will allow them to make purchases and pay bills using a total of 13 different cryptocurrencies.

USDC Holdings

Companies can gain a fresh perspective on the market thanks to this relationship. As the head of Binance Card and Binance Pay, Jonathan Lim, explained, “their market dominance and new payment solutions allow us to speed our access to consumers without having to construct our own terminals or software.”

The company has announced that the Binance card would have a 0.9% fee for each cryptocurrency transaction, as well as up to 8% rewards with cryptocurrency and free ATM withdrawals. The company announced that its Binance card would charge 0.9% for cryptocurrency transactions, provide up to 8% cashback in cryptocurrency, and provide free ATM withdrawals.

Martin Lee, a data journalist for Nansen, reports that USDC holdings on Binance have increased week over week. Lee tweeted on Tuesday, “Interesting to watch the number of USDC on Binance climb so much since the BUSD news.” Lee went on to say that in the past week, USDC on Binance increased by $1.5 billion. Unless its market capitalization falls below DAI’s $5 billion, the Paxos-managed stablecoin will remain the third largest stablecoin.

Once a major player in the top ten crypto assets by market capitalization, BUSD is dangerously close to falling out of the top 10 altogether. He said that, “considering that you can’t trade using USDC” on Binance, he would have anticipated a greater growth in the supply of tether (USDT) than USDC.

The Nansen analyst also pointed out that the USDC balance in Binance’s main wallet is at an all-time high of $1.8 billion today, the highest level seen in the past 90 days. A total of $1.821 billion USDC is stored in Binance’s wallet as of 2:00 PM (ET) on February 21, 2023. Binance stopped supporting USD Coin (USDC) trading pairs on September 5, 2022, and converted all customer USDC holdings to BUSD. As of today, the quantity of BUSD that have been taken from circulation since Paxos said it will no longer mint BUSD stands at 3.55 billion, according to reports in the news.

Also Read: Binance News: Crypto Exchange Has Good News For TRON Users

Binance stores just over 100 million Tether (USDT) in the same wallet, however Nansen’s portfolio viewer only displays ERC20-based balances. Tokens worth 5.34 million DAI and 79.24 million TUSD are also stored in the Binance wallet. Two weeks after Binance’s decision, Wazirx followed suit by automatically converting USDC and other stablecoin balances to BUSD.

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