Binance.US teams up with crypto start-up MoonPay in search of liquidity after US banks cut ties
- The MoonPay tie-up will allow users to buy Tether using Apple Pay, Google Pay and credit cards, then use the stablecoin to buy other crypto tokens
- For more than a month, customers of the crypto exchange have been unable to either deposit or withdraw dollars after multiple banking partners cut ties
Crypto exchange Binance.US has faced a series of legal and financial challenges as regulators have increased their scrutiny of crypto companies of all kinds. Now it’s teaming up with another embattled crypto firm in an attempt to regain access to a steady flow of dollars.
The access to MoonPay would provide an alternative way for Binance.US’ users to convert dollars to crypto: they will be able use their debit or credit cards, Apple Pay or Google Pay to buy Tether, and then use those stablecoins to buy the other crypto tokens still available on the platform. Customers have access to this option immediately, according to an email sent by the platform on Monday and reviewed by Bloomberg.
MoonPay chief executive officer Ivan Soto-Wright said in an interview with Bloomberg Television on Tuesday that his company would be performing know-your-customer compliance check for users from Binance.US.
“We obviously perform KYC; we follow all the regulatory rules across every single jurisdiction in which we operate, and so we can make it easy for them to top up their wallets,” he said.
In June, the US Securities and Exchange Commission sued Binance.US along with its global affiliate Binance.com, alleging “a variety of securities law violations”. While Binance.US, Binance.com and founder Zhao Changpeng have disputed the allegations against them, customers have fled the platforms.
At the time of the lawsuit, Binance.US had more than US$2 billion in customer cryptoassets under management, according to the SEC. In the months since, liquidity on the platform has dried up and its market share has dwindled, leaving it as a marginal player compared with US rivals Coinbase Global Inc. and Kraken.