Binance US suspends USD fiat deposit: transition to a crypto-only exchange.
Can the crypto space be sustainable without inflow of fiat currencies? This is a debatable and complex question, while this could be possible there are certain factors that most be considered for crypto space to thrive without fiat reliance. Crypto adoption and use cases will be a core use factor that will help push this ecosystem to a sustainable future, without real life use case for crypto getting users attention will still be slow, while more development and infrastructure are built into the space daily there are factors from regulators slowing and clamping down everything the space is trying to build with this external pressures slowing down growth in blockchain ecosystem creating viable ways of commercial transactions that will generate service for crypto adoption will be a difficult task ahead of the space, other factors to consider include having a robust decentralized finance (DeFi) protocol that will accelerate lending, borrowing and earning interest rates without depending on centralized finance (CeFi).
The crypto space is still at it early stage which will still make it quite challenging for this space to be sustainable without the impact of fiat currency inflow could there be more reliable way out of this regulatory clampdown well it will a rough ride for everyone in this space for now building and building more sustainable alternative measures that don't necessarily need use of third-party will be one step forward ahead of incoming regulations.
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SEC and binance U.S
Over the week we have seen how U.S Security exchange Commission (SEC) laid allegation against binance US for conducting sales of unregistered token to U S citizen and also claims binance mismanagement of investors funds this had negative impact on the entire crypto market as BTC and other altcoins had push back in price, binance US has responded to this allegations and claim they are false, seems SEC will stop at nothing until its goals are achieved, what could this goals be maybe getting rid of all centralized crypto exchanges in its region will suffice. The SEC has been scrutinizing Binance's operations and potential violation of securities laws. The regulator is concerned about the trading of certain digital assets on Binance's platform, which it believes should be registered as securities. Binance has been working to comply with the SEC's requirements and has made changes to its operations to address the concerns raised. The situation remains ongoing as Binance seeks to resolve the regulatory issues with the SEC.
Inline with the unnecessary market commotion binance US has made a step towards halting all fiat (USD) based transactions from it exchange today on a press release blog the exchange ask all U S based users to withdraw their fiat from the exchange as it will no long accept deposit and withdrawal fiat dollar (USD) from 13th of June 2023. Citing extreme aggressive pursuit from regulators on American digital Assets.
Moving on binance U S will only transact crypto base tokens, will this stop regulatory agencies from imposing more rules on crypto based exchange in U.S? There is little chance of escaping SEC grip even with the new initiated strategy of going fully crypto as long as binance U S operates in U S they will still have to deal with more of SEC issues let's see how this unfold in the future.