In the face of mounting regulatory scrutiny, Binance.US, an affiliate of the world's largest cryptocurrency exchange, discontinued direct dollar withdrawals and terminated Federal Deposit Insurance Corporation (FDIC) protection for dollar deposits on June 9, 2023. This decision was influenced by a combination of regulatory pressures and customer protection concerns.
Prior to these changes, Binance had been grappling with several lawsuits from key regulatory bodies. On June 5, both the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) launched lawsuits against the company. The SEC's case pertained to securities violations, while the CFTC targeted unregistered derivatives products.
These legal battles are part of a broader global challenge for Binance. The firm has faced restrictions on promoting digital assets in foreign markets, which led to a halt in new user registrations in the UK.
These developments have had notable effects on cryptocurrency markets. Amid these events, Bitcoin's value fell below US$27,000, a drop attributed to both the Consumer Price Index (CPI) data and the ongoing Israeli conflict.
In contrast to this turbulent environment for digital currencies, luxury car manufacturer Ferrari (NYSE:RACE) has begun accepting cryptocurrency payments in the US, signaling increased mainstream acceptance of digital currencies despite regulatory challenges.
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