- Binance.US has suspended USD services and advised users to withdraw their fiat deposits, citing regulatory challenges.
- The exchange’s banking partners are also planning to pause fiat withdrawal services, which will go into effect by June 13.
Binance.US has suspended USD services and advised users to withdraw their fiat deposits, citing regulatory challenges.
Binance.US, the American branch of the popular cryptocurrency exchange, made an announcement today stating that they will be temporarily halting USD deposits and advising users to withdraw their fiat deposits from the platform. The exchange’s banking partners are also planning to pause fiat withdrawal services, which will go into effect by June 13.
Binance.US took to Twitter to explain their decision, emphasizing that it aims to protect its customers and platform. They stated, “In an effort to safeguard our customers and platform, we are suspending USD deposits and notifying customers that our banking partners are preparing to temporarily halt fiat (USD) withdrawal services as early as June 13, 2023. We encourage customers to take appropriate action with their USD deposits.”
This strategic move positions Binance.US as a cryptocurrency-only exchange, assuring customers that trading, staking, and deposits and withdrawals involving cryptocurrencies will continue without interruption.
The exchange clarified that they maintain a 1:1 reserve for all customer assets, addressing concerns about withdrawal processing. They mentioned that any delays in processing withdrawals might be due to high volumes and the closure of banks during weekends.
The decision to suspend fiat services is a response to the recent formal charges brought by the US Securities and Exchange Commission (SEC) against Binance, its two US affiliates, and CEO Changpeng Zhao. These charges include allegations of commingling customer funds, operating an illegal exchange, and listing unregistered securities.
Binance.US attributed the suspension of fiat services to regulatory pressure faced by its banking partners, who have encountered difficulties in collaborating with the exchange. Earlier this year, Binance.US lost two banking partners, Silvergate Bank and Signature Bank, leading the exchange to rely on intermediary banks while actively searching for a direct banking partner.
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