In a remarkable turn of events, the world’s largest crypto exchange Binance and its subsidiary Binance.US have reached a proposed agreement with the US Securities and Exchange Commission (SEC), which now awaits approval from a federal judge. This development comes at the heels of a recent notice submitted to the US District Court for the District of Columbia, showcasing that both parties have come to an understanding.
Under the terms of the proposed agreement, only Binance.US employees will be allowed to access customer funds on the US-based crypto exchange. Additionally, Binance Global officials will be restricted from accessing the private keys of all types of wallets — be it cold, hot, or any hardware variants — as well as Binance.US internal systems and controls. This restriction also extends to tools such as Amazon Web Services.
In the coming weeks, Binance.US will share a detailed financial statement with the US SEC, which will include business expenses and estimated costs. The recent agreement between the SEC and Binance.US comes after a federal judge encouraged both parties to come to a mutual understanding instead of approving a restraining order to freeze assets of Binance’s US arm, which the exchange described as “unnecessary” and could potentially end its business in the US.
The impact of this agreement on the crypto market remains to be seen. As of now, the market seems to be recovering, with Bitcoin and Ethereum prices soaring by 5% each to $26,700 and $1,755, respectively. In other news, the US House Chair has expressed support for BlackRock Bitcoin ETF and scheduled SEC oversight hearings.
Despite the efforts to reach an agreement, concerns still linger regarding the level of control exercised by Binance Global officials over its US-based subsidiary, and whether these measures are sufficient to ensure compliance with regulatory requirements. While proponents of such agreements argue that they foster the growth of the crypto market, skeptics contend that the lack of transparency in the industry exposes investors to numerous risks.
As the regulatory landscape continues to evolve, it is essential for crypto enthusiasts to conduct thorough market research and remain informed of developments like these. It is worth remembering that the presented content, which may include the personal opinion of the author, is subject to market conditions, so invest wisely and be aware that the author or publication is not responsible for your personal financial loss.
Source: Coingape
