Binance, one of the leading cryptocurrency exchange platforms, recently submitted a joint proposal in collaboration with the Securities and Exchange Commission (SEC) to cover up any misunderstandings. The agreement puts forward temporary measures that restrict access to US customer funds exclusively to Binance.US staff.
Binance and SEC find common ground to protect customer assets
In the context of the legal battle surrounding cryptocurrencies, Binance and the Securities and Exchange Commission (SEC) have finally found common ground.
Both parties submitted a proposed agreement to temporarily restrict access to customer funds to employees of Binance.US, pending resolution of the ongoing dispute. This measure is designed to prevent withdrawals of assets from American customers in the country.
This agreement, unveiled in court documents filed last Friday aims to resolve SEC concerns about protecting customer assets while preserving the platform’s business.
Thus, Binance.US will implement enhanced security measures. This includes guaranteeing that the private keys of its wallets and various accesses will not be accessible to law enforcement authorities. Binance Holdings. In addition, the crypto trading platform will shortly have to publish detailed information on its operational expenses, including projected costs.
A solution in sight to end Binance’s legal battle with the SEC?
On June 5, the Securities and Exchange Commission (SEC) accused Binance and its executive of fraud and misappropriation of customer funds. In response, Exchange filed a motion in U.S. court challenging the SEC’s request for a temporary restraining order (TRO), also known as a Temporary Restraining Order (TRO) arguing that this could bankrupt the company.
For its part, the SEC feared the risk of funds being transferred abroad or documents being suppressed if the TRO was not granted.
The judge therefore referred both parties to a magistrate judge with the aim of reaching a satisfactory compromise. The aim was to protect customer funds and avoid liquidation of the exchange platform. Fortunately, the discussions resulted in a middle ground that seems to benefit all parties concerned.
As part of the agreement, Binance.US will have to create new inaccessible portfolios to employees of other Exchange units. In addition, the platform will have to provide additional information to the SEC.
Although final approval of the agreement is still in the hands of the federal judge in charge of the case, it represents a significant step forward toward the resolution of this complex dispute between Binance and the SEC.
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.