Binance US Renews Banking Push With MoonPay Deal – Binance US is revisiting its support for fiat through a partnership with MoonPay, just a month after the exchange had moved to a crypto-only model, discontinuing its fiat on- and off-ramp services. Binance US has been working on “integrating new US dollar on-ramp solutions, such as partnering with third-party payment provider MoonPay” the company told customers in an email.
The specific cryptocurrencies available for purchase and sale in dollars through the MoonPay partnership were not immediately evident. There was a suggestion that Tether’s USDT might be the only supported asset initially. MoonPay facilitates transactions through debit/credit cards and ACH transfers. Prior to the lawsuit filed by the US Securities and Exchange Commission earlier this year, the exchange allowed purchasing a wide range of crypto assets using dollar deposits.
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This allowed customers to subsequently convert those cryptocurrencies back to dollars and withdraw them from the Binance platform. An update listed for Binance US’ app on the Apple app store at the end of last week said users could “now buy and sell USDT with USD in-app via MoonPay.” A MoonPay spokesperson said in a statement on Tuesday that the company is “providing a service for those Binance US users that want to convert their crypto to fiat and deposit into their US bank account.”
Adding that MoonPay “performs rigorous KYC (know-your customer) checks on all customers.” The application on Tuesday continued to refer to Binance US as a “crypto-only exchange,” adding that the stablecoin “USDT is now our new base assets for transactions.” A message posted in the app said customers could purchase Tether’s USDT with dollars.
It seemed that users could utilize Binance US’ platform to purchase USDT via MoonPay, with the option to subsequently transfer the acquired USDT back to their Binance account balance. Following its shift to a crypto-only model due to uncertainties surrounding its legal situation with the SEC in the US, purchasing crypto using fiat currency on Binance has become more complex.
Common solutions include transferring digital assets from external wallets or other exchanges to Binance US and then engaging in trades, utilizing the supported cryptocurrency pairs that Binance still offers. In the earlier part of this year, a number of cryptocurrency exchanges and companies experienced the loss of their banking partners. This occurred as banks that were supportive of the industry, such as Silicon Valley Bank (SVB), encountered financial strain and had to cease operations.
This abrupt banking disruption resulted in a significant void in the availability of on- and off-ramps for crypto transactions, impacting the businesses reliant on these services. Among its banking service providers, Binance US included Prime Trust, a Nevada-based company that filed for bankruptcy.
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In a recent modification to its terms of service, the company announced its collaboration with US-based custodians that hold FDIC insurance. This collaboration will proceed as long as both the relevant Binance US affiliate and the custodian uphold compliance with the regulatory prerequisites for pass-through deposit insurance offered by the FDIC.
