“If market makers step back from trading on Binance now, and if Binance's U.S.-based trading desks have to stop operations, that will reduce liquidity in an already thin market," writes crypto researcher Noelle Acheson. Binance controls about 60% of world crypto trading, according to data provider CryptoCompare. regulatory agencies, the White House and some members of Congress. actions against Binance, which appear to be part of a broad, though unannounced crackdown on crypto in general by U.S. There may be market implications to the U.S. company that created a version of BUSD, regarding “several unresolved issues related to Paxos’ oversight of its relationship with Binance.”īinance decided to wind down the stablecoin, which now has a market value of about $7.7 billion, according to Nomics, down from $15.8 billion at the time of the order. The state’s Department of Financial Services cited a failure by Paxos, a U.S. In February, New York effectively killed the Binance USD (BUSD) token by ordering partner Paxos to stop minting the stablecoin. We hope the court will put an end to the perpetual delays which have left customers stranded without access to their assets for nearly nine months.” A spokesperson for Binance.US wrote in a statement: “It is unfortunate that Voyager customers continue to be victimized by a long and arduous bankruptcy process. The company did not respond to Forbes’ request for comment. Voyager’s creditor committee, which advocates for the interests of customers in the bankruptcy, said on Twitter it is “still analyzing the situation” and “will continue to aggressively oppose the government’s efforts.” Creditors overwhelmingly back the plan. New York separately said Voyager had been running an unlicensed securities business. Bankruptcy Judge Michael Wiles rejected the SEC’s claims. The agency also said the plan to return holdings to customers whose funds were frozen was not shown to be in compliance with U.S. Voyager, it said, failed “to adequately describe whether third parties, including Binance.US affiliates or foreign persons or entities, will have access to the keys for customer wallets or control over anyone with access to such wallets.” The SEC opposed the rescue initiative in the bankruptcy case last month, citing a lack of “necessary information regarding the safety of assets,” which include crypto accounts holding about $1 billion of cryptocurrencies. She said she would explain her reasons for the ruling later. subsidiary after regulators failed to delay it in bankruptcy court.Ī motion to put the court’s ruling on hold was granted by Judge Jennifer Rearden of the U.S. The action came on the same day as the Department of Justice succeeded in at least slowing the purchase of 3.5 million Voyager customer accounts by Binance’s U.S. “This action will hopefully mean the end of people coming into the crypto space trying to take advantage of the lack of regulatory clarity in the United States.” “The outcome of the Binance case will depend on the company's response, but a settlement is a likely possibility,” Warren said. Full responses to the CFTC allegations will come “in due time,” he added.
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