In the face of increasing regulatory scrutiny and financial obstacles, cryptocurrency exchange Binance.US has partnered with payment startup MoonPay to address the ongoing issues related to dollar deposits and withdrawals. The collaboration aims to provide a solution for Binance.US customers who have been unable to deposit or withdraw dollars due to severed banking relationships.
MoonPay, known for its NFT-related partnerships, offers an alternative method for Binance.US users to convert dollars into cryptocurrencies. Users can employ debit or credit cards, Apple Pay, or Google Pay to purchase Tether stablecoins, which can then be used to acquire other available crypto tokens on the Binance.US platform.
Ivan Soto-Wright, CEO of MoonPay, emphasized the company's commitment to regulatory compliance and customer convenience. He stated, "We obviously perform KYC; we follow all the regulatory rules across every single jurisdiction in which we operate, and so we can make it easy for them to top up their wallets."
Binance.US has been grappling with legal challenges, including a lawsuit filed by the US Securities and Exchange Commission (SEC) alleging securities law violations. Despite contesting these allegations, the exchange has experienced a significant loss of customers, resulting in reduced liquidity and market share. Formerly managing over $2 billion in customer cryptoassets, Binance.US's market share plummeted from over 20% to 0.7%, as per data from trading volume researcher Kaiko.
While Binance.US asserted that it still maintains banking partnerships enabling it to hold customer USD, the exchange did not disclose the names of these partners.
Headquartered in Miami, MoonPay raised $555 million in late 2021, valuing the company at $3.4 billion. The startup gained attention with celebrity endorsements from figures like Ashton Kutcher and Justin Bieber. Despite a 72% reduction in its internal share valuation earlier this year, MoonPay remains dedicated to its growth trajectory.
The collaboration between Binance.US and MoonPay underscores the evolving landscape of cryptocurrency exchanges and their attempts to navigate regulatory challenges while providing accessible services to their users. As regulatory oversight becomes more stringent in the cryptocurrency sector, partnerships of this nature could play a pivotal role in ensuring operational stability and fostering user trust.
By fLEXI tEAM