Binance US and MoonPay: A Strategic Partnership
Discover the strategic alliance between Binance US and MoonPay, a response to regulatory pressures, and its implications for the future of crypto transactions.
Binance US, a major player in the crypto exchange arena, recently faced significant regulatory challenges, prompting it to rethink its operational strategy. The result? A strategic partnership with MoonPay, a third-party payment provider, to ensure continued service to its vast user base.
Binance US found itself in a tight spot when the Securities and Exchange Commission (SEC) filed a lawsuit against it. Allegations of breaching securities laws were at the forefront, leading to significant consequences for the exchange. Banking partners began suspending USD channels, causing delays in processing withdrawals. This also resulted in the suspension of USD deposits and recurring buy orders. As a result, Binance US began the process of delisting USD trading pairs.
In response to these challenges, Binance US made a strategic decision to transition to a crypto-only exchange. This meant replacing the USD with USDT (Tether) as its base asset. The move was not only a way to navigate the regulatory hurdles but also a means to offer a reliable alternative to the traditional USD for its users.
The New Facilitator
MoonPay is a US-registered money service business that operates in over 160 countries. With a user base of over 5 million, it supports more than 80 assets. Trusted by over 300 leading wallets, websites, and applications, MoonPay has established itself as a reliable facilitator for crypto transactions.
Preview of the MoonPay Buy Crypto feature.
To ensure its users could continue transacting seamlessly, Binance US partnered with MoonPay. This collaboration allows Binance US customers to fund their USDT balances using various payment methods, including debit cards, credit cards, Apple Pay, and Google Pay. MoonPay's integration into Binance US's mobile wallets means users can now fund their accounts with USDT, bypassing the need for third-party banks. However, users should note that MoonPay does have some basic KYC requirements for initial transactions.
Despite the regulatory scrutiny and the challenges that came with it, Binance US showcased its resilience. By adopting USDT as its base asset, the platform ensured it could continue serving its users.