Cryptocurrency exchange Binance and its US subsidiary, Binance US, have reached a proposed agreement with the United States Securities & Exchange Commission (SEC) following the regulator’s motion to freeze Binance’s assets. The agreement, which still requires approval from a federal judge, stipulates that Binance Global officials will be restricted from accessing Binance US tools and wallets.
Under the proposed agreement, only Binance US staff will have access to client funds on the American subsidiary’s exchange. Binance Global employees will be prohibited from interacting with Binance US’s control, internal systems, and private wallet keys. Additionally, Binance US will be required to submit a comprehensive financial statement, including estimated costs and business expenses, to the SEC in the coming weeks.
The decision to restrict access comes after a judge rejected the SEC’s request to freeze Binance US assets. Binance, in response, emphasized that tampering with customer assets could potentially lead to the termination of its operations in the United States.
The SEC had expressed concerns that Binance might move funds offshore in the absence of a restraining order. The proposed agreement does not address the broader lawsuit filed by the SEC against Binance Holdings, which alleged poor practices, commingling of funds, and offering of unregistered securities.
As part of the proposed agreement, Binance US will introduce new cryptocurrency wallets that limit access by Binance Global staff. The exchange will also participate in an accelerated discovery program and provide additional information to lawmakers. Despite the restrictions, US clients will still be able to withdraw their funds.
