A notable step is the suspension of U.S. dollar deposits announced by Binance.US, the American division of the largest cryptocurrency exchange in the world. The choice was made soon after American officials sued Binance and its CEO, Changpeng Zhao. Binance.US also stated that its banking partners are getting ready to stop offering fiat dollar withdrawal channels as of June 13 as part of its transition to being a cryptocurrency-only exchange.

At 10:33 p.m. EDT on Thursday, Binance.US tweeted about the initiative, which was intended to be proactive during this regulatory scrutiny. The exchange informed its users that cryptocurrency deposits and withdrawals as well as trading and staking will continue to run smoothly.

This development comes after the U.S. Securities and Exchange Commission (SEC) recently filed lawsuits against Binance and Coinbase, the two biggest cryptocurrency exchanges in the country. On Monday, the SEC filed a complaint against Binance and its founder, Changpeng Zhao, and the next day, legal action was brought against Coinbase.

Crypto Exchange Takes Proactive Steps Amidst Lawsuit and Transition to Crypto-Only Platform

These developments expand on other steps taken against FTX over the past year and signal a major increase in the regulatory attack on the cryptocurrency sector. Binance.US’s decision, which highlights the difficulties experienced by major exchanges in the United States as they negotiate this changing terrain, has forced them to reevaluate their business models and move toward a crypto-focused one.

Although the suspension of U.S. dollar deposits places a temporary restriction on Binance.US users, the exchange is committed to continuing to run crypto trading and related services without any interruptions. The impact of these regulatory actions on the overall Bitcoin landscape will be widely watched by industry participants as the legal proceedings progress.