The court has given the SEC and Binance until Thursday to come to an agreement over To Resolve Asset Freezing
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Binance Asset Freezing.
The court has given the SEC and Binance until Thursday to come to an agreement over the asset freeze.
Binance, the largest cryptocurrency exchange in the world, and the United States’ Securities and Exchange Commission (SEC) are reportedly close to reaching a deal on an emergency request by regulators to freeze the assets of Binance firms in the United States.
A federal judge has set Thursday as the deadline for the parties to iron out any remaining issues with the agreement. A court mediator has been appointed by the judge to help mediate discussions between the disputing parties.
The American Binance branch (Binance.US) is required to submit a “routine spending” list by Wednesday at 9 a.m. local time.
On Tuesday, the SEC asked that Binance US affiliates’ assets be returned and provisionally frozen while the SEC’s action is pending. These affiliates include BAM Trading Services, which operates Binance.
US, and BAM Management. Binance’s founder, Changpeng Zhao, would no longer have access to the assets.
SEC LawSuit Against Binance and ZHAO
The SEC filed a lawsuit against Binance and Zhao last week, alleging that they failed to register as brokers, clearing agencies, exchanges, or securities sellers; illegally mixed customer assets misled customers about the company’s ability to detect market manipulation; and allowed U.S. customers to trade on foreign cryptocurrency exchanges.
The SEC argued that the emergency request to freeze the company’s assets was required to preserve monies owned by U.S. clients and managed by those organisations, and it did so just a few days after filing the lawsuit.
Binance claimed in separate court filings that the asset freeze would force it to shut down operations in the United States and would have far-reaching effects on the general public and other participants in the cryptocurrency market.
The company claims that millions of people in more than a hundred countries use its international exchange, Binance.com, for its alternative banking services because they either cannot use traditional banking services, do not have access to banks, or live in countries with unstable currencies.
The SEC stated in its emergency request that it intended to protect the assets of U.S. customers and prevent the loss of those assets in the event that a judgement was rendered against the SEC.
The agreement needs to be sanctioned by Judge Amy Berman Jackson of the United States District Court for the District of Columbia, who presided over the case.
Related: The Crypto Code: The New Way to Make Profits with Cryptocurrencies
Take Away
Recent developments in the dispute between the SEC and Binance include a deadline for the two parties to negotiate a settlement on the SEC’s request to freeze Binance’s assets. A mediator has been assigned by the judge to help with the talks.
The SEC is concerned about the safety and preservation of funds belonging to U.S. customers and has requested that Binance provide a detailed accounting of its monthly expenditures.
A judge in a federal district court will need to sign off on the agreement before it can go into effect.
Binance is one of the largest cryptocurrency exchanges in the world, thus this case has global implications. Binance serves as a gateway to the cryptocurrency market for a global audience.
However, the problems that have surfaced as a result of this SEC case highlight the importance of openness and regulation in the bitcoin sector.
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Binance Asset Freezing
Market participants and cryptocurrency users around the world will continue to keep an eye on this issue in anticipation of a deal that may have far-reaching consequences for Binance and the industry as a whole.
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