Update on the Binance US Potential Asset Freeze
Earlier this month, the SEC accused Binance of misleading investors and regulators, mishandling customer funds, and breaking security rules, asking for repatriation for US customers. For a while, it looked like there would be an asset freeze, but it seems to have been put off as of late because a consensus is near between the two involved parties.
If you’re interested in learning more about the latest update on the Binance US potential asset freeze, you’ve come to the right place. Read on to learn more about what is happening with this newly introduced compromise, what happened, and who needs to approve the situation for everything to move forward and the settlement to be achieved between parties.
Compromise Near Between Crypto Exchange Binance US and SEC To Prevent Asset Freeze
The case between Binance US and SEC has been fought long and hard over the past month, waging a battle of privacy and security rights between two powerhouses. A few days ago, a judge decided the best choice was to give the parties time to see if they could untangle a compromise instead of the alternative.
Without a compromise, the SEC would freeze Binance’s assets and potentially paralyze the crypto trading platform, removing their ability to operate to prevent them from doing anything with their funds. Rather than diving right into this solution, the sides are discussing a compromise, and it seems they are coming close to a resolution.
Judge Amy Berman Jackson reported the two sides are very close to a compromise, working on a deal to protect US citizens without destroying Binance. It’s a big step for internet privacy and trading online and we believe it is likely to eventually be successful.
Further Details on The Situation
The SEC originally sent for a temporary restraining order on the assets of Binance US while the lawsuit carried on for the defense of users and potential users. Binance fought against this request, calling it the death penalty a mere week into their case.
Judge Jackson pushed the compromise after Binance reported they would experience tremendous loss as a direct result of the asset freeze. Jackson agreed with this statement and thought the freeze would detrimentally impact internet trading for the foreseeable future.
If the compromise works, Jackson no longer needs to be in the middle. The agreement must be signed and enacted before the case is officially over, which has not yet happened as of June 26th, but it does appear that it will happen soon.
Of course, this case is still sensitive. You might have a few questions, which we will try to answer for the sake of you and your investments.
Is Binance Safe?
Right now, Binance is one of the safer cryptocurrency trading communities(but not 100% safe!). If you want to trade crypto and keep it secure, there are still protections available when using Binance. The case hasn’t done anything that would reduce assets and leave customer information vulnerable to outside observers.
A few safety measures on Binance include the following:
● Hardware 2FA, a real-time monitoring system
● Security notifications that arrive through email
● Additional advanced security features
They work to keep you safe as you use the website for your crypto purposes.
If the parties in this case reach a compromise, it’s likely your funds will become even safer. As of right now, it’s still one of the better choices online if you’re looking for a place to trade your crypto and other assets on the internet even with the court battle.
Related: The 5 Best Cryptocurrency Exchanges for Beginners
Is Binance Banning US Customers?
The last month has been a crazy ride for Binance as the CEO, Changpen Zhao, prepared for the restriction of US customers ahead of the SEC. However, things changed again after they successfully guided the SEC towards a compromise instead of taking extreme action like they previously wanted. Now - is Binance still banning customers from the United States?
There are currently some restrictions on Binance in the United States as it works towards a compromise to ensure users remain safe on the site. However, nothing is certain right now. Users who use a Binance account can keep theirs for now, and those who don’t currently have an account might want to refrain from signing up until things are resolved in court.
What Would Happen If Binance Shuts Down?
Binance has dipped very close to destruction several times during this case, and they came especially close when the SEC threatened to push a freeze on their assets. However, it seems the negotiations are sparing the site from this destruction for now. What would happen if Binance were to shut down?
Considering Binance is currently one of the biggest trading exchanges on the internet, many people all over the world would find themselves struggling to trade crypto without the platform. Even if only Americans are banned, this would still wreak havoc on the company’s liquidity causing issues for all users, which is one reason even the SEC is pushing for a compromise—less another financial behemoth collapse on their watch.
Related: Who is Changpen Zhao?
Should I Get My Money Off of Binance?
Things are still very uncertain with Binance right now. If you have money on the site, no need to rush to pull it out, as your funds are guaranteed even in the case of a closure or freeze. We do, however, recommend not putting any new money on the site until things are sorted with the SEC. You may also feel a little safer when you withdraw your funds, which is always an option.
If you are American, it is advised to withdraw your funds as soon as possible.
We should have an answer sooner rather than later, as it’s revealed they are nearing the end of their negotiations
A compromise discussion is underway between Binance and the SEC, and it looks like they are nearing a conclusion. There likely won’t be an asset freeze as was previously threatened, but it’s never a bad idea to be cautious when large companies and organizations are at war.
We hope this information was valuable! In this uncertain time with a potential settlement on the way, it’s critical to be careful as you navigate the world of cryptocurrency and work to make the right choices for your future. Binance is safe for now, but it might be a good idea to take extra precautions until everything is secure between the SEC and Binance.
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