On the chain, data is showing that Binance is stepping back from the crypto staking services.
Binance.US is an independent American subsidiary of the Binance crypto exchange. The services of this exchange are only available in the US, to remain 100% compliant with the country’s financial regulation system. Over the past few years, BinanceUS & Binance faced regulatory investigation over their potential deep relationship.
On 9 May 2023, Conor, director at Coinbase Exchange, shared a chart in which we can see that BinanceUS unstaked a huge amount of staking crypto funds & transferred to its cold wallets.
At the time of writing this article, the crypto staking page is fully functional & live on the BinanceUS homepage but there is the possibility that BinanceUS may terminate its crypto staking services shortly.
SEC vs crypto staking
In the US the United States Securities and Exchange Commission (SEC) is the dominant crypto regulatory body. In Feb of this year, the SEC body charged the Kraken crypto exchange over crypto staking services. Later Kraken exchange blindly settled the case with a $30 million fine & also terminated crypto staking services for the US customers.
In March of this year, the SEC body sent a Wells notice to the Coinbase exchange over a potential violation of securities laws. The Wells notice also targeted Coinbase’s crypto staking services as a violation of the Securities Act.
It is worth noting that both Kraken & Coinbase are highly regulated crypto exchanges in the US, but still they faced legal pressure.
By considering all these facts, we can assume that BinanceUS is planning to suspend its crypto-taking services in advance before any Wells notice.
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