Today's News: Binance Global And Binance US Reach A Deal With The SEC

By Newton Gitonga of Invezz

Saturday, June 17, 2023 6:01 PM EST

Cryptocurrency exchange Binance and its American arm Binance US reached a new deal with the United States Securities & Exchange Commission. The proposed agreement restricts Binance Global officials from accessing Binance US tools and wallets.

Breaking‼️: #Binance, https://t.co/lcxc32KAcF Reaches Deal With The US SEC

Binance and https://t.co/lcxc32KAcF reaches proposed stipulation with the US #SEC to restrict Binance Global access to https://t.co/lcxc32KAcF wallets and systems.
— HODLers (@HODLersofficial) June 17, 2023

The move comes in response to the regulator’s motion to freeze the platform’s assets. The proposed agreement awaits federal judge approval. Meanwhile, the new order suggests only Binance US staff could access client funds on the exchange’s American subsidiary.

Further, Binance Global employees cannot interact with Binance US’s control, internal systems, and private wallet keys.

Binance Holdings and the SEC reached an agreement

A new notice of proposed stipulation & consent order shows Binance, Binance US, and the SEC reached a deal, prohibiting Binance Global staff access to Binance US wallets and tools like Amazon Web Services.

Moreover, the exchange’s US-based firm will submit a comprehensive financial statement, including estimated costs and business expenses, to the United States SEC in the coming weeks.

The latest decision comes after a judge declined the regulator’s proposal to freeze Binance US assets. The leading exchange stated that tampering with customer assets will possibly end its undertakings in the US.

The Securities & Exchange Commission had expressed concerns that Binance might move funds offshore amid failure to grant a restraining order.

Other facets of the agreement are Binance US to launch new cryptocurrency wallets that restrict access from the global exchange’s staff, accept an accelerated discovery program, and offer extra info to lawmakers.

United States clients can still withdraw their funds. Meanwhile, accepting the proposed agreement will address some concerns that the SEC highlighted in the earlier lawsuit.

Last week, the regulator sued Binance Holdings for poor practices, funds commingling, and offering unregistered securities. Moreover, the proposed deal doesn’t explore the broader suit.