Cryptocurrency exchange giant Binance is reportedly having trouble securing banking partners in the US. According to reports, banks have been refraining from doing business with Binance as it faces a major lawsuit involving the US Commodity Futures Trading Commission (CFTC). As a result, Binance.US customers are facing disruptions in their trading activities.
Binance is one of the biggest cryptocurrency exchanges in the world, and is known for its cutting-edge trading platform, fast transaction speeds, and a wide selection of cryptocurrency trading pairs. The most recent action against Binance stems from a lawsuit from the CFTC alleging the exchange acted as an unregistered broker-dealer and broke anti-money laundering rules. As investigators start to close in on Binance and the cryptocurrency space remains highly regulated, the exchange has been unable to find banks willing to do business with them in the US, despite trying to reach out to at least two.
Cross River Bank and Customers Bancorp Inc. are reported to be some of the banks refused to do business with Binance. Customers Bancorp Inc. refused for regulatory reasons, indicating that the cryptocurrency exchange’s unsettled legal situation was the primary factor behind their wariness.
The news highlights the difficulty in establishing a presence within the highly regulated cryptocurrency space. The lack of banking partners could eventually be the undoing of the exchange, as it limits its ability to offer certain services in the US. With the federal government continuing to be tough on unlawful activity in the digital currency market, it is clear that exchanges like Binance need to establish compliant trading operations and secure banking partners if they want to continue to grow, survive, and thrive in the US market.
Binance, founded in 2017, has become one of the world’s most successful cryptocurrency exchanges, with a daily trading volume of around $2 billion. The exchange is headed by its founder and CEO Changpeng Zhao (CZ), who has become a major figure in the industry with his dedication to the cryptocurrency space and his pioneering efforts in development and innovation. CZ has been a significant driving force in the Bitcoin and blockchain space, and is an important figure in the global cryptocurrency community. He envisions a future where digital currencies are widely accepted and integrated into the global financial system.