Binance and Binance.US Reach Agreement with US SEC to Restrict Access, Ensuring Compliance
In a significant development in the ongoing legal battle between Binance, #BinanceUS , and the US Securities and Exchange Commission ( #SEC ), Judge Amy Berman Jackson of the US District Court for the District of Columbia has approved the "Proposed Stipulation and Consent Order." This agreement imposes restrictions on Binance and Binance.US, aiming to enhance regulatory compliance and protect customer assets. This article explores the details of the approved agreement and its implications for the involved parties.
Restrictions on Access and Control
Under the approved agreement, Binance.US employees will be the sole authorized individuals to access customer funds on the US-based crypto exchange. Notably, #Binance Global officials will be restricted from accessing private keys associated with all wallets, including cold and hot wallets, hardware, and software, as well as Binance.US's internal systems and controls. These restrictions are to be implemented within 14 days.
Repatriation of Assets and Asset Custody
The consent order signed by Judge Amy Berman Jackson emphasizes the "repatriation" of all fiat currency and crypto assets related to Binance.US. Binance is required to transfer these assets to BAM Trading, ensuring possession, custody, and control within the United States. This step reinforces the commitment to safeguarding customer assets held on the Binance.US trading platform.
Separation of Binance and Binance.US
To reinforce regulatory compliance and maintain transparency, Binance.US is ordered not to provide possession, custody, or control over customer assets to any individual or entity associated with Binance, including CEO Changpeng " #CZBINANCE " Zhao. As part of this separation, Binance.US is mandated to create new crypto wallets with distinct private and administrative keys. Both Binance and Binance.US will operate with separate wallets and management structures.
Transferring Custody and Financial Reporting
As part of the agreement, Binance.US may transfer the custody of its staking-as-a-service program to trusted custodians BitGO or Aegis, subject to specific conditions. Additionally, Binance.US is obligated to share a detailed financial statement, including business expenses and estimated costs, with the US SEC. This transparency measure covers the period from December 1, 2022, until the date of the accounting.
Next Steps and Future Proceedings
Judge Amy Berman Jackson has instructed the parties to file a joint status report on June 23, proposing a schedule for further proceedings. In the event of disagreement, each party will be allowed to present their individual proposals. This step ensures that the legal process continues in a transparent and organized manner.
Conclusion
The approval of the proposed agreement between Binance, Binance.US, and the US SEC marks a significant milestone in the ongoing legal dispute. The imposed restrictions and compliance measures aim to enhance the security of customer assets and strengthen regulatory compliance. As the parties move forward, the joint status report and subsequent proceedings will shape the future course of action. It is important for all stakeholders to closely monitor these developments and ensure compliance with the evolving regulatory landscape.