Binance partners with MoonPay to allow users to convert dollars into crypto
Binance.US, the American branch of the largest crypto exchange, has announced a strategic partnership with MoonPay, a payment startup. This collaboration marks a significant development as it grants US clients the option to acquire cryptocurrencies using US dollars via bank cards, Google Pay, and Apple Pay.
Thanks to this step, customers will be allowed to buy Tether USD (USDT), a stablecoin, which can then be used to facilitate the purchase of other cryptocurrencies. This innovative approach addresses the recent challenges faced by Binance.US clients, particularly concerning restrictions encountered while depositing and withdrawing dollars. These constraints arose due to the discontinuation of partnership between Binance.US and certain banking partners. Such limitations hindered traders and investors from fully capitalising on the opportunities presented by the dynamic crypto market.
In June this year, the U.S. Securities and Exchange Commission (SEC) initiated legal action against both Binance.US and its CEO Changpeng Zhao. The main accusation revolved around the violation of trading regulations, with the SEC designating BNB and the BUSD stablecoin as securities.
Furthermore, the SEC called for a freeze on the assets of Binance U.S. Responding to this, the exchange asserted that the regulator’s requisites were unjustified and did not adequately account for the safeguarding of funds of the clients. Later, the US Federal court rejected the request for a temporary asset freeze.
Amidst reports that Changpeng Zhao was contemplating the closure of the Binance’s branch in the US due to concerns over potential losses for the company and its customers arising from regulatory pressures, tensions heightened. However, the recent partnership with MoonPay holds promise for brightening the situation.