The collaboration with MoonPay presents Binance.US users an alternative avenue for converting dollars into cryptocurrency.
The need for this collaboration arose after Binance.US had to suspend dollar deposits following the loss of banking partnerships, prompted by legal action from the U.S. Securities and Exchange Commission (SEC) for allegedly operating an unregistered securities exchange.
MoonPay, recognized for its prominent involvement in nonfungible token (NFT) collaborations, now empowers Binance.US customers to leverage their debit or credit cards, Apple Pay, or Google Pay to acquire USDT. Subsequently, this stablecoin can be used to procure various other crypto tokens accessible on the platform. Immediate access to the MoonPay option is already available to customers.
Emphasizing stringent adherence to regulatory protocols, MoonPay‘s CEO, Ivan Soto-Wright, highlights the execution of thorough know-your-customer compliance checks for Binance.US users. This strategic alliance unfolds against the backdrop of legal challenges faced by Binance.US due to a lawsuit from the SEC, which targets both the exchange and its global counterpart, Binance.com, over alleged securities law violations. Subsequent to the lawsuit, Binance.US has encountered a decline in market share and liquidity, leading to a reduced standing compared to U.S. counterparts Coinbase Global Inc. and Kraken.
During the cryptocurrency fervor of 2021, MoonPay secured substantial funding of $555 million and garnered endorsements from prominent figures like Ashton Kutcher and Justin Bieber.
The crypto industry grapples with a pivotal challenge, marked by heightened regulatory scrutiny on crypto entities globally. The SEC’s allegations against Binance and its founder, Changpeng Zhao, encompass unauthorized services to U.S. customers, inadequate control over client assets, and disregard for compliance and anti-money laundering standards. Additionally, Binance has encountered a lawsuit from the Commodity Futures Trading Commission (CFTC), accusing the company of breaching the Commodity Exchange Act.
The ongoing legal complexities faced by Binance and other players in the crypto arena underscore the industry’s ongoing struggle to define its identity. While the industry initially attracted enthusiasts with its image of a frontier of digital innovation, regulatory authorities are now tightening oversight on questionable practices.
