Binance's US platform has promptly addressed and dispelled rumors circulating about its Bitcoin cash (BCH) reserves, affirming the security of customers' funds. The exchange has taken proactive measures to regain confidence by resuming BCH withdrawals following a brief suspension caused by a technical issue in the automated deposit management system.
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.jpg "Binance US Reacts to Bitcoin Cash FUD, Ensures Safety of User Funds") |
| Binance |
Binance US swiftly resolves BCH withdrawal concerns amid FUD.
Binance US, the American affiliate of the world's largest cryptocurrency exchange, has promptly confronted and debunked uncertainties surrounding users' Bitcoin cash holdings. With a commitment to maintaining 1:1 reserves, the platform assures clients that for every BCH held on the platform, an equivalent BCH is securely reserved. In a statement shared on Twitter, the exchange explained that a temporary halt in BCH withdrawals was necessitated by a technical glitch in the deposit sweeping system.
Under normal circumstances, funds from customers' individual deposit wallets are automatically transferred to the platform's hot wallets and later stored securely in cold wallets. However, over the weekend, automatic sweeps from clients' BCH deposit addresses did not occur as expected. Binance US quickly rectified the situation by implementing a fix, thus resuming normal deposits, hot wallet, and cold wallet flows. Since late Sunday night, BCH withdrawals on all networks have become fully operational.
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Reaffirming a commitment to security amidst FUD
Binance US emphasizes that its establishment is focused on serving U.S.A. consumers while adhering to U.S. regulations. The exchange unequivocally states that despite the proliferation of fear, uncertainty, and doubt (FUD), customers' assets remain safe and secure, and no amount of FUD will ever compromise their security.
Binance faces regulatory challenges globally, including investigations and legal actions in the United States, where it has been accused of violating securities laws and mishandling client funds. Hence, the market share of its U.S.A. subsidiary has experienced a significant decline. In response to recent reports of executive departures at the exchange, Binance founder Changpeng Zhao fired them as FUD.
Graph depicting the sharp decline of Binance.US market share
Wade Guenther, a partner at investment firm Wilshire Phoenix, explains that exchanges set themselves apart through the variety of tokens they offer. Kraken and Bitstamp are hoping to capitalize on increased investor interest and any potential rise in cryptocurrency prices. However, they must also be cautious about enforcement risks, as the SEC recently expanded its list of classified cryptos as securities.
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Discover the Distances between Binance and Binance.US
Aside from the SEC's actions, the US Commodity Futures Trading Commission has also charged Binance with providing illegal access to its derivatives trading desk to US firms. These companies may have played a pivotal role in ensuring smooth daily operations by providing crucial liquidity to the exchange. Binance CEO Changpeng Zhao has denied allegations that the exchange is experiencing a mass exodus of executives following these legal battles. Recently, after failing to obtain a license from Dutch regulators, Binance transferred its Dutch customers to a competitor.