Former US SEC enforcement chief, John Reed Stark, made a playful remark about Binance when the cryptocurrency exchange paused letting customers in the Euro region take out their regular money.
People are having trouble getting their money out of Binance because there aren’t clear paths for putting money in or taking it out. There’s no set timeline for when customers will be able to retrieve their money.
On August 21, John Reed Stark, a former SEC enforcement chief, posted a message. He suggested that both the SEC and FINRA should swiftly deploy a team of auditors, inspectors, and examiners to look into Binance’s decision to stop customers from withdrawing regular money. He then sarcastically taunted Binance for not having official registration within the Eurozone.
Stark brought up a response from Binance Customer Support to a user dealing with Euro withdrawals via SEPA. This response highlighted that Binance has temporarily halted Euro deposits and withdrawals through SEPA, and there isn’t a clear timeline for when this suspension will end.
Binance had previously stated that its partner, Paysafe, would allow customers to use SEPA for fiat transfers up until September 25. However, the exchange quickly stopped this service for “high frequency” users.
During this time, Binance is advising customers to consider alternative methods like Visa cards or peer-to-peer (P2P) services for their crypto transactions.
Binance’s Potential Legal Trouble in the US
Binance withdrew its registration from various European countries, including the Netherlands, Germany, and Austria. This withdrawal from registration comes in the context of MiCA regulation, which permits crypto exchanges to operate across all Eurozone nations once they gain approval in just one country.
Binance, a major cryptocurrency exchange, could be headed for legal action from the US Department of Justice (DOJ) due to ongoing lawsuits initiated by the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Interestingly, Binance has countered the CFTC lawsuit by requesting its dismissal, arguing that the regulator lacks the authority to intervene.
Both Binance and its subsidiary, BinanceUS, are actively contesting what they perceive as excessive regulatory influence from the US SEC. This challenge has led to the submission of a motion for a protective order, which has been presented by the defendants BAM Trading Services and BAM Management US Holdings. This motion is now in the hands of Magistrate Judge Faruqui for resolution.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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