Binance.US Halts Direct Dollar Withdrawals Amid Regulatory Scrutiny The U.S. recently announced that the Committee on Foreign Investments in the United States (CFIUS) might need to evaluate Binance‘s takeover of Voyager in its notice filing, as it could involve a potential national security risk if subject to their jurisdiction. Specifically, the committee would accordingly assess the inherent risks associated with such transactions.
Before any proposed acquisition or merger involving a foreign investor gaining control of a U.S.-based company, it must be submitted to the (CFIUS) for review and approval. This process is entirely voluntary – though highly recommended – and can take either 30 Days or more than 12 months, depending on the transaction’s complexity.
The Binance.US deal aims to restore customers’ access to locked funds in Voyager
Compared to other contenders such as rossTower, Wave Financial, and INX, Binance.US came out on top by negotiating a contract with Voyager that would quickly open up their customer’s access to restricted funds.
As part of the current examination, users could access their digital assets and receive payments from Voyager on Binance. The U.S. To start things off, Binance.US proposed an initial deposit of $10 million with an additional maximum of $15 million for expenditures to be paid by Voyager.
The review’s outcome can impede or facilitate the completion of the deal
The outcome of the review may impede, delay, or alter this transaction’s completion terms.
According to the document, when considering such delicate matters, bankruptcy courts will factor in reviews from CFIUS and other potential national security risks when assessing a bidder’s eligibility.
CFIUS is a vital component of safeguarding American technology, intellectual property, and infrastructure from exploitation by actors whose interests oppose those of the United States. Also, this includes both foreign entities as well as domestic ones.
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