In a strategic maneuver to adapt to changing regulatory landscapes and maintain operational vitality, Binance’s American arm, Binance.US, has diligently sought a payments partner willing to navigate the evolving terrain. As conventional banking partnerships underwent dissolution due to mounting regulatory pressures, Binance.US embarked on a quest to secure an alternative fiat on/off ramp solution.
On the 22nd of August, Binance.US unveiled a fresh avenue, facilitating customers’ capability to infuse their Tether (USDT) balances with United States dollars (USD) through collaborative services.
Transitioning towards a Crypto-Exclusive Model: Binance and MoonPay
In a decisive move, Binance.US articulated its gradual shift towards a crypto-exclusive exchange model, a shift that entails the replacement of USD with USDT as the novel bedrock asset for transactional activities.
In early June, Binance.US took the consequential step of suspending USD deposits, attributing the decision to challenges encountered with traditional banking associates. This measure followed what the exchange described as “exceptionally aggressive and coercive tactics” employed by the U.S. Securities and Exchange Commission (SEC), who pursued legal action against Binance, citing a series of alleged offenses and even sought an asset freeze.
In its quest for a dependable fiat payment solution, Binance.US has joined forces with MoonPay, a provider that extends “dependable USD payment alternatives to Binance.US clientele,” according to an official statement.
Incorporating Enhanced Funding Routes: A Collaborative Effort
“To streamline the process of bolstering your account with USDT, we have engaged with third-party payment providers like MoonPay, thereby unveiling novel USD on-ramps that enable the acquisition of USDT via debit card, credit card, Apple Pay, and Google Pay,” elucidated Binance.US.
The integration of MoonPay into Binance.US mobile wallets facilitates users’ ability to fund their accounts with USDT, effectively permitting the acquisition of the world’s largest stablecoin directly from MoonPay using USD. The collaborative move effectively circumvents the need for intermediaries like conventional banks.
Nevertheless, MoonPay has stipulated rudimentary Know Your Customer (KYC) requisites, which include the provision of personal details such as name, date of birth, and billing address during the initial transaction. “On average, the verification process takes a mere 60 seconds to conclude,” emphasized Binance.US.
The Deeper Struggles of BNB
MoonPay, a legally registered money service business in the U.S., boasts an international presence across over 160 nations, earning trust from more than 300 prominent wallets, websites, and applications, as stated on its website. The company purports to serve 5 million users and offer support for more than 80 different assets.
Following the announcement, Binance’s native token, BNB, experienced a notable surge of 5% within the preceding 12-hour span. However, it is noteworthy that BNB had earlier plunged to its lowest valuation in over a year, hitting a nadir of $204 on the 22nd of August. Subsequently, the token managed to recover, with current trading reflecting a valuation of $213 at the time of composing this report.
Yet, the challenges confronting Binance persist. Speculation remains rife regarding the potential liquidation of reserves aimed at shoring up the beleaguered exchange token.
