Binance.US works out a deal with SEC to avoid shutdown
Binance.US works out a deal with SEC to avoid shutdown
Binance.US is cooperating with the U.S. Securities and Exchange Commission (SEC) on an agreement that would allow it to avoid a total asset freeze.
U.S. District Judge Amy Berman Jackson felt the two sides were proposing similar ways to protect client funds without shutting down the exchange and sent them to a justice of the peace to work on a compromise agreement, Bloomberg reported.
"The finer details are better handled by you than by me," Jackson said during the hearing in Washington.
The SEC sought a court order to temporarily freeze the assets of cryptocurrency exchange Binance, Binance.US, and their owners after the regulator filed 13 charges against the companies on June 5 for violating state law.
During the hearing, Binance.US said the asset freeze would hurt its business and clients because the exchange needs to be able to cover normal business expenses such as rent, salaries, vendors, and software licenses.
"A complete shutdown would have significant consequences not only for the company but for the digital asset markets as a whole," Amy Berman Jackson said in support of Binance.US's testimony.
In addition, the Securities and Exchange Commission has asked Binance.US to report its business expenses and professional fees to assess what it will take to keep the platform running.
Binance.US now has more than $2.2 billion in client assets.
Previously, we wrote that Nigeria's market regulator ordered cryptocurrency exchange Binance to cease all operations in the country due to a lack of registration.
