MoonPay Steps in to Resolve Crypto Payments Suspension for Binance.US

Police & Regulations
Aug 23, 2023 at 12:43 pm

Customers of Binance.US now have the opportunity to leverage the services provided by MoonPay in order to streamline the process of purchasing cryptocurrencies and withdrawing fiat funds from the exchange. This development emerges as a solution to the issue Binance.US faced when it suspended U.S. dollar deposits earlier in the year.

The suspension of dollar deposits by the U.S. exchange in June was a result of severed banking relationships, a consequence of legal actions initiated by the U.S. Securities and Exchange Commission (SEC). The regulatory body had raised allegations that Binance.US was operating an unregistered securities exchange.

To address this challenge, MoonPay, a startup focused on payment solutions, has taken the initiative to enable Binance.US customers to convert their dollar holdings into various cryptocurrencies. This process involves acquiring the stablecoin tether (USDT) through means like debit cards, credit cards, Apple Pay, or Google Pay, and then proceeding to convert it into a range of crypto tokens.

MoonPay has clarified its role by emphasizing that it provides a service for users who are interested in purchasing and converting cryptocurrencies, as well as depositing cryptocurrency assets into their U.S. bank accounts. As part of this process, the startup conducts necessary know-your-customer (KYC) checks on users.

Notably, Binance.US functions as an independent entity from its parent company Binance, which is recognized as the world's largest cryptocurrency exchange based on trading volume. However, Changpeng "CZ" Zhao, the founder of Binance, also holds the position of chairman at Binance.US. Despite facing regulatory scrutiny, Binance.US continues to operate within the United States, setting it apart from global competitors like Coinbase and Kraken.

In terms of trading volume, Binance.US currently records approximately $10.5 million in a 24-hour period, according to data from CoinGecko. This is in contrast to Coinbase's trading volume of around $1.15 billion and Kraken's volume of $500 million. This divergence underscores Binance.US's emphasis on the U.S. market. At present, Binance.US has not issued an immediate response regarding these recent developments.

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