Binance.US is partnering with MoonPay, a financial technology company that offers payment infrastructure for the crypto industry, to deposit the money of its consumers. This could end the company’s months-long banking problem, which made it tough for the crypto exchange to deposit its customers’ money.
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Binance.US is a partner of the largest Cryptocurrency exchange, Binance.com, and has a licensing agreement with it. The firm operates as a separate legal entity. The crypto exchange earlier used to deposit its customers’ money in either Silvergate Capital or Signature Bank. However, the recent banking crisis led to the failure of these crypto-friendly banks. Moreover, increased regulatory scrutiny made it challenging for Binance.US to find a new banking partner.
Earlier, it tried to partner with Cross River Bank and Customers Bancorp (NYSE:CUBI) but failed.
While the MoonPay partnership could help resolve Binance.US’ banking problem, its partner Binance continues to face legal and regulatory headwinds.
Binance Faces Challenges from Multiple Ends
In a separate development, the Wall Street Journal reported that Binance is facing legal risks due to a potential breach of U.S. sanctions involving Russia. While Binance scaled back its operations in Russia, the report highlighted that its exchange continues to handle significant Ruble trading volumes. Furthermore, the report indicates that customers have the ability to convert funds from sanctioned banks into balances on Binance through various intermediaries.
While Binance denied any such acts and stated that the company follows global sanctions rules, it adds to the list of problems it is facing.
As the company is up against several challenges, let’s look at the performance of its crypto coin, Binance Coin (BNB-USD).
Why is the BNB Dropping?
The fact that Binance faces several legal and regulatory hurdles across different markets explains why BNB-USD has underperformed the major cryptocurrencies like Bitcoin (BTC-USD) and Ethereum (ETH-USD). Binance Coin has declined by 11.29% year-to-date compared to an increase of nearly 57% and 37% in Bitcoin and Ethereum.
