Crypto News

Former US SEC Chief Mocks Binance As Fiat Withdrawals Are Suspended

Former US SEC enforcement chief John Reed Stark on Monday takes a jibe at Binance as the crypto exchange suspended fiat withdrawals for customers in the Euro area. Customers are facing problems withdrawing their money from Binance as there are no on-ramp and off-ramp service providers and no timeframe for when customers can get their money back.

Former SEC Chief Calls Binance’s Fiat Withdrawal Issue “Disturbing”

John Reed Stark in a post on August 21 said the SEC and FINRA should immediately send a team of auditors, inspectors, and examiners to investigate Binance’s fiat withdrawal suspension. Then he mocks Binance for not having registration in Eurozone.

“Disturbing. The SEC and FINRA should immediately send a team of auditors, inspectors and examiners to investigate what happened and, if appropriate, refer the matter to the SEC Enforcement Division or even DOJ. Oh wait, Binance is not registered. Never mind. Caveat Emptor.”

Stark cited a response by Binance Customer Support to a customer who is facing Euro withdrawals through SEPA. It reveals Binance has suspended Euro withdrawals and deposits via SEPA. Also, the exchange doesn’t have a specific time frame for SEPA transfers.

Binance earlier announced that its partner Paysafe will allow customers to transfer fiat via SEPA until September 25. However, the exchange is freezing all “high frequency” users immediately.

In the meantime, customers are requested to use alternative methods such as Visa cards or P2P services for buying and selling crypto.

Crypto exchange canceled its registration from several European countries including the Netherlands, Germany, Austria, and others. MiCA regulation allows crypto exchanges to receive passport rights in all Eurozone countries if they get approval in a single country.

Binance Faces Challenges in the US

Binance risks facing a lawsuit from US DOJ after the recent lawsuit by US SEC and CFTC. Meanwhile, the exchange has asked the CFTC lawsuit to be dismissed arguing that the regulator lacks jurisdiction.

Binance and BinanceUS are also challenging US SEC’s overreach in the lawsuit. The motion for a protective order filed by defendants BAM Trading Services and BAM Management US Holdings is referred to Magistrate Judge Faruqui for resolution.