• Binance.US temporarily suspended trading for stablecoin pairs involving BUSD through One Common Billing System (OCBS).
• The suspension was due to an ongoing investigation by the Commodity Futures Commission (CFTC) into potential violations committed by the exchange.
• The CFTC accused the company and its CEO of instructing its employees and customers to circumvent compliance controls in order to maximize corporate profits.
Binance US Suspends Trading for BUSD Pairs
On March 31, Binance.US, a US-based subsidiary, announced that it had temporarily suspended trading for stablecoin pairs involving Binance USD (BUSD) through One Common Billing System (OCBS). The suspension was due to an ongoing investigation by the Commodity Futures Commission (CFTC) into potential violations committed by the exchange.
Services Impacted By Suspension
The decision to halt services came amidst the current global banking crisis, which has caused uncertainty and affected Binance.US’s operations. The suspended services include BUSD crypto deposits and withdrawals and buying, selling, and converting crypto options. The exchange has confirmed on its status dashboard that it is investigating the situation, and the services will remain suspended until further notice. Additionally, the exchange recently halted specific U.S. dollar deposit services and temporarily suspended Apple Pay and Google Pay deposits for reasons related to the company.
CFTC Accuses Binance of Violations
The CFTC filed a lawsuit against Binance and its CEO Changpeng “CZ” Zhao, on March 27, alleging trading violations. The lawsuit claims the exchange did not meet compliance obligations, including failure to register with the regulator. The allegations suggest that the exchange aided its customers in circumventing compliance controls. The CFTC accused the company and its CEO of instructing its employees and customers to circumvent compliance controls in order to maximize corporate profits
Binance Denies Allegations
In response to the allegations made by the CFTC, Binance CEO Changpeng “CZ” Zhao addressed the matter in a blog post. CZ denied the accusations and pointed out that