Today we are seeing how DeFi needs TradFi in cases like Binance whose banking partners are backing away due to Binance’s regulatory and legal problems. https://youtu.be/XB6M4x87wb8

1. By:
www.ProfitableInvestingTips.com

2. Cryptocurrencies have had a spectacular
run since the creation of Bitcoin in 2009.
Despite difficulties brought on by crypto
winter and a wave of regulation, crypto and
decentralized finance are here to stay.

3. However, contrary to some of the hype
along the way, crypto has not replaced
traditional currencies and decentralized
finance or DeFi has not replaced traditional
finance or TradFi. Today we are seeing
how DeFi needs TradFi in cases like
Binance whose banking partners are
backing away due to Binance’s regulatory
and legal problems.

4. Binance Cut Off From TradFi

5. After US banks cut ties with Biance.US
the company has had to look for other
options to let their customers move funds
in and out of their accounts. Bloomberg
writes about how Binanace.US is trying to
work with a crypto payment startup,
MoonPay as a workaround. The problem
for Binance is that their banking partners
all cut their ties with the crypto company.

6. Thus, for a month or more they have had no way for
customers to put dollars into their crypto accounts
or take assets out in dollars. What they are trying
is a work-around in which people use debit or
credit cards via MoonPay to purchase Tether
stablecoins. Then they can purchase other tokens
which can then be converted into dollars. This
approach may work for Binance but it creates a lot
more fuss and bother that Binance.US does not
need as its customers are fleeing to exchanges
with fewer “issues.”

8. Demise of Binance.US

9. The United States Securities and Exchange
Commission sued Binance.US as well as
its international parent company
Binance.com. They allege a whole host of
violations of securities laws. The issue will
work its way through the court system.
Meanwhile the world goes on and the $2
billion in customer crypto assets held by
Binance.US prior to the lawsuit has
virtually evaporated.

10. Customers are fleeing and every single
Binance.US banking partner has ceased
their relationship with the company. It has
gone from being a major player in the US
to being an afterthought with Kraken and
Coinbase now taking the lead.

11. Binance.US may or may not lose its lawsuit
with the SEC. However, it has already lost
even before the issues get their day in
court. Crypto customers of Binance.US are
not interested in the company’s legal
troubles.

12. They want their own trouble free methods to
hold cryptocurrencies, buy or sell in the
world of DeFi, and pursue their own
business objectives. What they want is an
unencumbered connection between
decentralized finance and traditional
finance in order to do business normally.

13. How Secure Is the Binance.US Work
Around With MoonPay?

14. Despite being a bit cumbersome, it would
appear that using MoonPay is a possible way
for Binance.US to let its customers deposit
into or withdraw from their accounts. Then the
question is just how stable is MoonPay. The
company got a lot of celebrity endorsements
(Justin Bieber and Ashton Kutcher) last year.
We are reminded of celebrities who
promote crypto and the problems they can
get themselves into. We see that MoonPay
cut its internal valuation of its shares by 72%
early this year!

15. If MoonPay ends up not being able to help
Binance.US, the Binance affiliate in the US
could go out of business even before its
case with the SEC goes to court. Thus the
SEC could potentially accomplish its
purpose of eliminating the company as a
regulatory issue without any formal legal
action. Simply breaking the connection
between DeFi and TradFi may have been
enough to accomplish the SEC’s purpose.

16. For more insights and useful information
about investments and investing, visit
www.ProfitableInvestingTips.com.