Binance and SEC Settle: U.S. Customer Funds and Wallet Keys Return Onshore

In a groundbreaking development, cryptocurrency exchange Binance has reached an agreement with the U.S. Securities and Exchange Commission (SEC) to relocate all U.S. customer funds and wallet keys back onshore. 

Binance Commits to SEC’s Requirements, as the U.S. Customer Funds & Wallet Keys to Be Moved Onshore.

Binance, one of the world’s largest cryptocurrency exchanges, has been in talks with the SEC for some time regarding compliance and regulatory matters. This agreement marks a significant step towards addressing the SEC’s concerns and ensuring the protection of U.S. customers’ assets.

The deal between Binance and the SEC signifies a positive development for the U.S. cryptocurrency market. By bringing customer funds and wallet keys back onshore, it enhances transparency, and regulatory oversight, and ultimately safeguards the interests of U.S. investors.

However pending approval from a federal judge overseeing the case, Binance.US has put forth a proposed agreement. Under this agreement, Binance.US will take specific measures to ensure that officials from Binance Holdings, the global exchange, cannot access private keys, hardware wallets, or Binance.US’s Amazon Web Services tools. 

Additionally, Binance.US will share detailed information about its business expenses, including estimated costs, in the coming weeks. As, this proposed agreement is a response to a motion from the SEC, which aimed to freeze all of Binance.US’s assets while pursuing securities-related charges against the exchange.

The SEC expressed concerns about funds being moved offshore or records being destroyed without a temporary restraining order (TRO) in place. According to Binance.US’s legal team, freezing all assets would have severe consequences comparable to the “death penalty.”

Also Read: Breaking! Binance Withdraws from Netherlands: SEC Legal Battle and Unsuccessful VASP License Bid Add to Regulatory Woes

Judge Urges Collaborative Resolution in Binance-US SEC Case, Citing Time Constraints

In the ongoing lawsuit, Judge Amy Berman Jackson, presiding over the District Court for the District of Columbia, has suggested that the involved parties strive to reach an agreement on a proposed stipulation. 

Judge Jackson emphasized the advantages of this approach over her issuing a restraining order, pointing out the time limitations of two weeks for a more comprehensive hearing. This consideration is particularly crucial given the extensive 4,000-page exhibits already submitted by both parties.

Under the proposed agreement, Binance.US, the U.S.-based crypto trading platform, will take steps to establish new crypto wallets that are strictly off-limits to officials from Binance Holdings, the global exchange. 

Furthermore, Binance.US has committed to providing the SEC with additional information and will abide by an expedited discovery schedule. Notably, customers based in the United States will retain their ability to withdraw funds during this transitional phase.