Binance.US has halted direct US dollar withdrawals
from its platform. This change follows a series of regulatory actions by the US
Securities and Exchange Commission (SEC). As a result, Binance.US’ users are
now required to convert their US dollar holdings into stablecoins or other
digital assets for withdrawal.
This decision was revealed in the exchange’s updated terms
of use, which took effect yesterday (Monday). Previously, US dollar deposits in
Binance.US user wallets were protected by FDIC insurance. However, under the
new terms, this safeguard is no longer applicable.
“Your accounts and digital assets are not
eligible for FDIC insurance protection,” the crypto exchange indicated.
“In the event you wish to withdraw US dollar funds from your account, you
may convert such US dollar funds to stablecoins or other digital assets, which
can subsequently be withdrawn.”
In June, the US affiliate of the global crypto
exchange Binance suspended USD deposits, accompanied by a notification to its
customers regarding the impending pause of fiat withdrawal channels. The
exchange cited its intentions to safeguard its customers and the platform
amidst growing regulatory concerns.
The background to this move is the ongoing legal
battle between Binance.US, its international parent company Binance, and its Founder, Changpeng Zhao, against the SEC. On June 5, the SEC filed a lawsuit
alleging that these entities and Zhao operated unregistered securities
platforms.
Binance.US, in a message to its users, cited the
SEC’s “extremely aggressive and intimidating tactics” as the reason
behind suspending dollar deposits. This regulatory pressure made
their banking partners wary of engaging with the cryptocurrency sector.
Furthermore, Binance.US warned that its banking partners were preparing to
pause dollar withdrawals as early as June 13.
The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry. https://t.co/AZwoBOgsqS and our business partners have not been spared in the use of these tactics, which has created… pic.twitter.com/rlIe6swIoY
— Binance.US 🇺🇸 (@BinanceUS) June 9, 2023
Navigating Cryptocurrency Regulations
Binance.US announced the suspension of its OTC Trading Portal services in June. Additionally, the exchange delisted ten crypto
trading pairs associated with Bitcoin and Binance USD from its platform.
Notably, several of these pairs experienced significant declines in value
following the SEC’s legal action. This delisting significantly reduced the
number of trading pairs on the crypto exchange.
In September, the SEC escalated its ongoing legal
battle with Binance.US, urging a court in Washington, DC, to grant permission
for a comprehensive examination of the exchange’s asset custody services. This
development comes as the regulator intensified its claims that Binance.US has been
uncooperative in providing requested documents.
Binance.US has halted direct US dollar withdrawals
from its platform. This change follows a series of regulatory actions by the US
Securities and Exchange Commission (SEC). As a result, Binance.US’ users are
now required to convert their US dollar holdings into stablecoins or other
digital assets for withdrawal.
This decision was revealed in the exchange’s updated terms
of use, which took effect yesterday (Monday). Previously, US dollar deposits in
Binance.US user wallets were protected by FDIC insurance. However, under the
new terms, this safeguard is no longer applicable.
“Your accounts and digital assets are not
eligible for FDIC insurance protection,” the crypto exchange indicated.
“In the event you wish to withdraw US dollar funds from your account, you
may convert such US dollar funds to stablecoins or other digital assets, which
can subsequently be withdrawn.”
In June, the US affiliate of the global crypto
exchange Binance suspended USD deposits, accompanied by a notification to its
customers regarding the impending pause of fiat withdrawal channels. The
exchange cited its intentions to safeguard its customers and the platform
amidst growing regulatory concerns.
The background to this move is the ongoing legal
battle between Binance.US, its international parent company Binance, and its Founder, Changpeng Zhao, against the SEC. On June 5, the SEC filed a lawsuit
alleging that these entities and Zhao operated unregistered securities
platforms.
Binance.US, in a message to its users, cited the
SEC’s “extremely aggressive and intimidating tactics” as the reason
behind suspending dollar deposits. This regulatory pressure made
their banking partners wary of engaging with the cryptocurrency sector.
Furthermore, Binance.US warned that its banking partners were preparing to
pause dollar withdrawals as early as June 13.
The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry. https://t.co/AZwoBOgsqS and our business partners have not been spared in the use of these tactics, which has created… pic.twitter.com/rlIe6swIoY
— Binance.US 🇺🇸 (@BinanceUS) June 9, 2023
Navigating Cryptocurrency Regulations
Binance.US announced the suspension of its OTC Trading Portal services in June. Additionally, the exchange delisted ten crypto
trading pairs associated with Bitcoin and Binance USD from its platform.
Notably, several of these pairs experienced significant declines in value
following the SEC’s legal action. This delisting significantly reduced the
number of trading pairs on the crypto exchange.
In September, the SEC escalated its ongoing legal
battle with Binance.US, urging a court in Washington, DC, to grant permission
for a comprehensive examination of the exchange’s asset custody services. This
development comes as the regulator intensified its claims that Binance.US has been
uncooperative in providing requested documents.
