The “Proposed Stipulation and Consent Order” between defendants Binance and BAM Trading (Binance.US) and plaintiff US Securities and Exchange Commission (SEC) has been approved by the US District Court for the District of Columbia Judge Amy Berman Jackson on June 17.
As per the agreement reported by CoinGape Media, Binance.US employees will be the only ones with access to customer funds on the US-based crypto exchange, barring Binance Global officials from having access to private keys of all wallets, including cold and hot wallets, hardware, and software, as well as Binance.US’s internal systems and controls within 14 days.
According to the consent order signed by Judge Amy Berman Jackson, Binance is required to “repatriate” all fiat currency and crypto assets related to Binance.US on or before the date the court issues the order. In addition, Binance.US must not provide possession, custody, or control over customer assets to any individual or entity, including Binance and CEO Changpeng “CZ” Zhao.
Binance.US has been ordered to create new crypto wallets with new private and administrative keys separate from Binance business wallets and management. Also, the transfer of crypto custody of the staking-as-a-service program to custodians BitGO or Aegis is permitted under specified conditions. Furthermore, in the coming weeks, Binance.US will share a detailed financial statement including business expenses and estimated costs from December 1, 2022, to the date of the accounting with the US SEC.
Judge Amy Berman Jackson ordered both parties to file a joint status report on June 23, proposing a schedule for further proceedings or setting forth individual proposals if a joint proposal cannot be agreed upon.
The enforced separation between Binance and Binance.US raises questions about the future of global crypto exchanges operating under ever-evolving regulation. Crypto enthusiasts will be keen to see how the imposed restrictions impact both businesses and the wider industry. Both Binance and Binance.US must navigate regulatory waters carefully, as failing to adhere to the court’s order could lead to significant penalties or further restrictions.
The regulatory landscape in the crypto world is constantly changing. Crypto exchanges, businesses, and enthusiasts will need to stay abreast of these changes, as neglecting to adapt to regulatory requirements could spell trouble for those involved. Investors must also be careful when selecting platforms to use for their transactions, ensuring they are using compliant services to protect their assets in this fast-paced, evolving financial space.
Source: Coingape
