BUSD Trading Temporarily Halted by Binance.US After CFTC Allegations
Binance has suspended the BUSD stablecoin pairs through the One Common Billing System.
The move was a result of allegations that Binance helped clients evade KYC policies.
binance's [BNB] United States-based subsidiary, Binance.US, temporarily suspended Binance's USD [BUSD] stablecoin pairs through One Common Billing System (OCBS), as the Commodity Futures Trading Commission ( CFTC) investigated the exchange for alleged violations.
Affected services include BUSD cryptocurrency deposits and withdrawals, as well as cryptocurrency buy, sell and conversion options.
The Binance.US statement read:
“OCBS and the stablecoin pairs for BUSD are temporarily suspended. We are working to restore all services as soon as possible."
The decision came shortly after the exchange halted certain US dollar deposit services. Additionally, it temporarily stopped Apple Pay and Google Pay deposits due to the company:
“Transition to new banking and payment service providers in the coming weeks.”
Previously, Binance.US also halted debit card deposits for up to 5% of its clients, but stated that it was working to restore all services as soon as possible.
Binance has suspended the BUSD stablecoin pairs through the One Common Billing System.
The move was a result of allegations that Binance helped clients evade KYC policies.
binance's [BNB] United States-based subsidiary, Binance.US, temporarily suspended Binance's USD [BUSD] stablecoin pairs through One Common Billing System (OCBS), as the Commodity Futures Trading Commission ( CFTC) investigated the exchange for alleged violations.
Affected services include BUSD cryptocurrency deposits and withdrawals, as well as cryptocurrency buy, sell and conversion options.
The Binance.US statement read:
“OCBS and the stablecoin pairs for BUSD are temporarily suspended. We are working to restore all services as soon as possible."
The decision came shortly after the exchange halted certain US dollar deposit services. Additionally, it temporarily stopped Apple Pay and Google Pay deposits due to the company:
“Transition to new banking and payment service providers in the coming weeks.”
Previously, Binance.US also halted debit card deposits for up to 5% of its clients, but stated that it was working to restore all services as soon as possible.
Binance Helped Clients Evade Compliance Checks, CFTC Alleges
The latest announcement comes as Binance.US global subsidiary Binance is under investigation by the Commodity Futures Trading Commission (CFTC). On March 27, the CFTC sued Binance and CEO Changpeng “CZ” Zhao for alleged trading violations, alleging that the exchange failed to meet compliance obligations by failing to register with the regulator.
The regulator claimed that the exchange secretly instructed clients on how to bypass compliance checks. The CFTC also stated that the company and its CEO:
“He instructed his employees and customers to circumvent compliance controls to maximize corporate profits.”
CZ responded to the allegations in a Blog, claiming that the complaint contained an “incomplete recitation of the facts” and that the exchange disagreed with the characterization of many of the issues raised in the complaint.
Binance was founded in September 2019; Binance.US is a separate entity from Binance. For the uninitiated, the latter is not available for users in the US due to local regulations.