- Such conditions are spelled out as part of an agreement with the SEC.
- This agreement is pending approval from a federal judge.
American division of the cryptocurrency exchange Binance concluded preliminary agreement with the SEC. According to him, Binance.US must take measures to ensure that none of the officials of the global exchange has access to private keys for various wallets. We are talking about hardware wallets or access to Amazon Web Services Binance.US tools.
In addition, over the coming weeks, the US cryptocurrency trading platform will provide details of its business expenses, including an estimated cost amount.
Such actions were taken in response to a ban on disposing of its assets in connection with possible violations of securities laws. The SEC has expressed concern about the possible transfer of Binance.US funds to offshore jurisdictions and has filed a request for a temporary restraining order. Advocates for Binance.US noted that the asset freeze was too drastic a step, comparing it even with the “death penalty”.
US District Court Judge Amy Berman Jackson recommended that the parties negotiate a deal instead of imposing a temporary injunction. Her suggestion was that Binance.US undertake to create new wallets that employees of the parent company would not have access to. They must also provide additional information to the SEC and agree to an expedited disclosure schedule. During this period, US customers will be allowed to withdraw funds as before.