Binance and Binance.US Propose Stipulation with US SEC to Limit Binance Global Access to Binance.US Wallets and Systems
Binance, the largest cryptocurrency exchange globally, and its subsidiary Binance.US have reached a proposed agreement with the US Securities and Exchange Commission (SEC). The agreement is currently awaiting approval from a federal judge. This development signifies a significant step forward in resolving the regulatory issues between Binance and the SEC, highlighting ongoing efforts to address compliance concerns within the crypto industry.
Under the proposed agreement, access to customer funds on the US-based crypto exchange, Binance.US, would be limited exclusively to Binance.US employees. Officials from Binance Global would be prohibited from accessing private keys associated with all wallets, including cold and hot wallets, as well as other hardware wallets. Additionally, access to Binance.US’s internal systems and controls would be restricted for Binance Global officials. This agreement aims to enhance security measures and ensure greater separation between the two entities’ operations.
Binance and US SEC Reach Proposed Agreement
The US Securities and Exchange Commission (SEC), along with defendants Binance Holdings and Binance.US, has submitted a notice of proposed stipulation and consent order to the US District Court for the District of Columbia. This agreement signifies a resolution reached between the parties involved.
Also Read:Â Binance Faces Investigation in France for KYC and AML Compliance Failures
Under the agreement, Binance Holdings officials will be restricted from accessing Binance.US’s wallets, including hardware wallets, as well as systems like Amazon Web Services tools. Additionally, Binance.US has committed to providing a comprehensive financial statement that includes business expenses and estimated costs to the US SEC within the coming weeks. This agreement emphasizes tighter control over access and enhanced financial transparency between the parties involved.
Following a request from Judge Amy Berman Jackson, the US Securities and Exchange Commission (SEC) and Binance.US have opted to pursue an agreement instead of having the judge approve a restraining order to freeze assets of Binance’s US-based arm. Binance expressed concerns that such an asset freeze could lead to the termination of its US operations and deemed the restraining order unnecessary. This decision reflects a proactive approach to resolve the dispute between the parties while minimizing potential disruptions to Binance’s business in the United States.
In a surprising turn of events, the US Securities and Exchange Commission (SEC) took the initiative to address its concerns regarding Binance’s control over its US-based subsidiary, complying with a court order issued on June 13. Both the SEC and Binance reached an agreement on a proposed stipulation and consent order, which is now pending approval from a federal judge. This cooperative step reflects progress in resolving the regulatory issues between the SEC and Binance.
In a positive development for the crypto market, both Bitcoin and Ethereum experienced a significant recovery, with prices surging 5% each. Bitcoin reached $26,700, while Ethereum rose to $1,755. The market’s upswing was fueled by positive sentiments among traders, attributed to the announcement of BlackRock iShares spot Bitcoin ETF. This news contributed to a broader recovery throughout the crypto market.
Also Read: SEC Lawsuit Ripple Effect: BinanceUS Staff Cuts, Coinbase’s Market Share Dented by Robinhood
Important:Â This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
Follow Cryptos Headlines on Google News
Join Cryptos Headlines Community
