Arslan Butt
Binance.US, a US-based branch of the global cryptocurrency exchange Binance, has proposed a deal to purchase the assets of Voyager Digital, a Canadian cryptocurrency brokerage firm. The deal, if accepted, would enable Binance.US to expand its customer base and broaden its offerings by acquiring Voyager Digital’s trading platform and other assets.
SEC Objects to https://t.co/G6bADSZVGN' $1B Voyager Acquisition Deal, Says Lender Might Have Sold Unregistered Securities
The SEC is investigating whether Binance. United States, Voyager, and related entities have viol… https://t.co/Fg4Uea0PBX #Binance #Crypto pic.twitter.com/ei4w6pccIu
— Lola Coin (@LolaCoinOrg) February 24, 2023
Voyager operates in both the US and Canada, but if the proposed deal goes through, it would give Binance.US a strong foothold in the North American cryptocurrency industry. In turn, Voyager could benefit from Binance’s expertise and resources in the cryptocurrency space.
However, it’s important to note that the deal is not yet finalized and may require regulatory clearance. The proposed acquisition is facing opposition from US regulators, including the Securities and Exchange Commission (SEC) and the New York State Department of Financial Services (NYDFS).
These regulators have expressed concerns about the security of user funds and data, as well as Binance’s lack of SEC registration. It’s also possible that the terms of the deal could change or that the deal may not proceed at all.
SEC, New York regulator oppose https://t.co/oecRyZT1ts $1 billion deal for Voyager – https://t.co/fKETPsmFkY #businessnews #finance #marketnews pic.twitter.com/hjW1e6AGJ5
— World Finance News (@Worldfin_News) February 24, 2023
Reports indicate that regulators are worried about the lack of transparency surrounding the deal and the potential transfer of client data and assets to Binance. The fact that Binance is not registered with the US Securities and Exchange Commission (SEC) is also a concern for regulators.
Consequences Of Binance.US and Voyager Digital’s Merger
As previously mentioned, the proposed merger between Binance.US and Voyager Digital would enable Binance.US to acquire Voyager Digital’s client base and assets, which includes its cryptocurrency trading platform.
However, several authorities and industry experts have expressed doubt about the acquisition, citing concerns about Binance’s lack of SEC registration and the potential impact on the regulatory environment for cryptocurrencies in the US.
SEC Intervenes in Binance US Acquisition of Bankrupt Crypto Lender Voyager Digital's Assets
The United States Securities and Exchange Commission (SEC) has intervened in the investment buy … https://t.co/roucq6w4yG #Binance #Bitcoin #Bitcoin.com #Crypto pic.twitter.com/jX2kk6fQkb
— Lola Coin (@LolaCoinOrg) January 6, 2023
The New York Department of Financial Services (NYDFS) has filed another complaint, alleging that Voyager operated without a license in the state and deprived New York clients of the consumer protections provided by state regulation.
The NYDFS also noted that New York residents who use the Voyager service may experience longer wait times to receive their cash compared to residents of other states since Binance.US is not licensed to operate in New York.
Binance.US & Voyager Digital
Binance.US is the US-based affiliate of Binance, a global cryptocurrency exchange. It’s a cryptocurrency trading platform that enables users to buy, sell, and exchange cryptocurrencies such as Bitcoin and Ethereum. Binance.US was launched in 2019 to comply with US regulations and provide a safe and compliant platform for American consumers to trade cryptocurrencies.
However, Binance.US has been facing regulatory scrutiny and criticism from the US Securities and Exchange Commission (SEC). The SEC has expressed concerns about Binance’s lack of regulatory compliance and transparency, as well as the security of consumer assets and data on the platform.
On the other hand, Voyager Digital is a publicly listed cryptocurrency brokerage and trading platform based in New York City. The company’s mobile app and web-based trading platform allow retail and institutional investors to access over 60 cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.
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This article was written for Business 2 Community by Arslan Butt.
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