The world’s largest cryptocurrency exchange, Binance, is facing a major setback as a number of banks are reportedly preparing to cut off its access to the US banking system. The move comes after the Securities and Exchange Commission (SEC) filed a lawsuit against Binance’s US subsidiary, Binance.US, alleging that the company violated securities laws by offering unregistered securities to US customers.
The SEC’s lawsuit is a major blow to Binance, which has been operating in a legal gray area in the US for years. The company has never been registered with the SEC or any other US financial regulator. As a result, it has been unable to obtain access to the US banking system through traditional channels.
The banks that are reportedly preparing to cut off Binance’s access to the US banking system include Signature Bank, JPMorgan Chase, and Citigroup. These banks are all major players in the US financial system, and their decision to cut off Binance could have a significant impact on the company’s ability to operate in the US.
Binance has not yet commented on the banks’ decision. However, the company has said that it is “committed to working with regulators” and that it is “confident” that it will be able to resolve the SEC’s lawsuit.
The SEC’s lawsuit against Binance is the latest in a series of regulatory challenges facing the cryptocurrency industry. In recent months, a number of cryptocurrency exchanges have been forced to close their doors or face heavy fines from regulators. The SEC has also cracked down on cryptocurrency companies that offer initial coin offerings (ICOs), which are a type of crowdfunding that allows companies to raise money by selling digital tokens.
The SEC’s focus on cryptocurrency regulation is likely to continue in the coming months. The agency has said that it is committed to protecting investors from fraud and abuse in the cryptocurrency market. As a result, it is likely that more cryptocurrency companies will face regulatory scrutiny in the future.
The SEC’s lawsuit against Binance is a major setback for the company. However, it is also a sign that regulators are taking the cryptocurrency industry seriously. As the cryptocurrency market continues to grow, it is likely that regulators will continue to play a more active role in overseeing the industry.