Binance US, the US subsidiary of the world's largest cryptocurrency exchange, has delisted more than 100 cryptocurrency trading pairs following a lawsuit by the Securities and Exchange Commission (SEC). The SEC alleges that Binance US violated securities laws by selling unregistered securities.
Trading pairs that have been removed include a variety of altcoins, as well as Bitcoin and Ethereum. Binance US also halted its OTC (over-the-counter) marketplace, which allows users to trade large amounts of cryptocurrency without going through an exchange.
The SEC's lawsuit is a major setback for Binance US, which has been trying to get regulatory approval in the United States. The company has said that it is cooperating with the SEC investigation and that it is committed to complying with all applicable laws.
The removal of trading pairs and the suspension of the OTC market will likely have a significant impact on Binance US users. Many of the altcoins that have been delisted are popular with retail investors, and the OTC market was a convenient way for users to buy and sell large amounts of cryptocurrency.
The SEC's lawsuit is also a sign of the increasing scrutiny cryptocurrency exchanges are facing from regulators around the world. In recent months, several cryptocurrency exchanges have been fined or investigated by regulators for various violations.
The future of Binance US is uncertain, but the company's decision to remove trading pairs and halt the OTC market suggests that it is taking the SEC's lawsuit seriously. The company will need to address the SEC's concerns if it wants to continue operating in the United States.
Here are some of the possible reasons why Binance US removed trading pairs:
To comply with the SEC's demand.
Reduce your regulatory risk.
To focus on your core business of trading Bitcoin and Ethereum.
It is also possible that Binance US will add the trading pairs back in the future, once it has resolved the SEC concerns.