Binance, the largest crypto exchange platform by market capitalization, has announced major milestones today with its return to India after a $2 billion penalty fine settlement with the South Asian financial ministry. In another remarkable move, Binance converted a reserved SAFU fund to USD coin, which made a 3% increase in the stablecoins circulating supply.
Binance’s $2 billion settlement
Binance’s return to the South Asian markets comes after an earlier ban by Indian legislators on KuCoin and OKX crypto exchange sites in December 2023.
After the Indian Financial Intelligence Unit (FIU), a regulatory body came up with regulatory policies for digital assets, Binance agreed to settle the penalty and continue its business in India. Among the laws are the Prevention of Money Laundering Act (PMLA) and the VDA Taxation, a framework that will ensure that global powerhouses don’t expose the country’s financial system to attacks.
Binance converts SAFU funds to USDC.
In today’s Binance moves lies the SAFU funds conversion to USDC, a move made for stability and reliability, as announced by Binance’s official X page.
Advertisement
USD Coin, a stablecoin that is currently trading at $1.00, maintains its stability through its backing up with U.S. dollar reserves of $32.6 billion, according to coinmarketcap.
According to analysis by Etherscan, a $800 million conversion was initiated first from Ethereum, followed by $ 745 million worth of funds from BNB, and a $ 16,277 BTC conversion to the stablecoin.
Reports from CoinGecko show that USDC lies second after Tether, with market shares of 33% and 69%, respectively. This shows Binance’s trust levels for the stablecoin market as a haven in situations of extreme volatility that dominate the crypto market. Binance had previously held the backup funds in BNB, Bitcoin, TUSD, and USDT, according to a release by Bloomberg.
This strategic move comes amid heavy scrutiny by the U.S. and global legislators on Binance, which led to the resignation of Changpeng “CZ” Zhao and a $4.3 billion fine.
With Chief Executive Officer Richard Teng’s strategic moves providing continued stability for the digital assets in the exchange, crypto pundits can now venture into the murky waters without fear of losses.
Read Also: Hong Kong Approves Bitcoin and Ethereum ETFs, Market Reaction
Maina Lewis
I'm a crypto enthusiast with a passion for breaking down complex blockchain concepts into clear, engaging content. Fueled by curiosity, I'm constantly researching the latest crypto trends and developments to keep readers informed and excited about the ever-evolving digital landscape. Whether you're a seasoned crypto investor or just starting your journey, I aim to empower you with the knowledge to navigate this dynamic frontier.