Binance.US has halted direct US dollar withdrawalsfrom its platform. This change follows a series of regulatory actions by the USSecurities and Exchange Commission (SEC). As a result, Binance.US' users arenow required to convert their US dollar holdings into stablecoins or otherdigital assets for withdrawal.
This decision was revealed in the exchange's updated termsof use, which took effect yesterday (Monday). Previously, US dollar deposits inBinance.US user wallets were protected by FDIC insurance. However, under thenew terms, this safeguard is no longer applicable.
"Your accounts and digital assets are noteligible for FDIC insurance protection," the crypto exchange indicated."In the event you wish to withdraw US dollar funds from your account, youmay convert such US dollar funds to stablecoins or other digital assets, whichcan subsequently be withdrawn."
In June, the US affiliate of the global cryptoexchange Binance suspended USD deposits, accompanied by a notification to itscustomers regarding the impending pause of fiat withdrawal channels. Theexchange cited its intentions to safeguard its customers and the platformamidst growing regulatory concerns.
The background to this move is the ongoing legalbattle between Binance.US, its international parent company Binance, and its Founder, Changpeng Zhao, against the SEC. On June 5, the SEC filed a lawsuitalleging that these entities and Zhao operated unregistered securitiesplatforms.
Binance.US, in a message to its users, cited theSEC's "extremely aggressive and intimidating tactics" as the reasonbehind suspending dollar deposits. This regulatory pressure madeits banking partners wary of engaging with the cryptocurrency sector.Furthermore, Binance.US warned that its banking partners were preparing topause 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 cryptotrading pairs associated with Bitcoin and Binance USD from its platform.Notably, several of these pairs experienced significant declines in valuefollowing the SEC's legal action. This delisting significantly reduced thenumber of trading pairs on the crypto exchange.
In September, the SEC escalated its ongoing legalbattle with Binance.US, urging a court in Washington, DC, to grant permissionfor a comprehensive examination of the exchange's asset custody services. Thisdevelopment comes as the regulator intensified its claims that Binance.US has beenuncooperative in providing requested documents.
Binance.US has halted direct US dollar withdrawalsfrom its platform. This change follows a series of regulatory actions by the USSecurities and Exchange Commission (SEC). As a result, Binance.US' users arenow required to convert their US dollar holdings into stablecoins or otherdigital assets for withdrawal.
This decision was revealed in the exchange's updated termsof use, which took effect yesterday (Monday). Previously, US dollar deposits inBinance.US user wallets were protected by FDIC insurance. However, under thenew terms, this safeguard is no longer applicable.
"Your accounts and digital assets are noteligible for FDIC insurance protection," the crypto exchange indicated."In the event you wish to withdraw US dollar funds from your account, youmay convert such US dollar funds to stablecoins or other digital assets, whichcan subsequently be withdrawn."
In June, the US affiliate of the global cryptoexchange Binance suspended USD deposits, accompanied by a notification to itscustomers regarding the impending pause of fiat withdrawal channels. Theexchange cited its intentions to safeguard its customers and the platformamidst growing regulatory concerns.
The background to this move is the ongoing legalbattle between Binance.US, its international parent company Binance, and its Founder, Changpeng Zhao, against the SEC. On June 5, the SEC filed a lawsuitalleging that these entities and Zhao operated unregistered securitiesplatforms.
Binance.US, in a message to its users, cited theSEC's "extremely aggressive and intimidating tactics" as the reasonbehind suspending dollar deposits. This regulatory pressure madeits banking partners wary of engaging with the cryptocurrency sector.Furthermore, Binance.US warned that its banking partners were preparing topause 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 cryptotrading pairs associated with Bitcoin and Binance USD from its platform.Notably, several of these pairs experienced significant declines in valuefollowing the SEC's legal action. This delisting significantly reduced thenumber of trading pairs on the crypto exchange.
In September, the SEC escalated its ongoing legalbattle with Binance.US, urging a court in Washington, DC, to grant permissionfor a comprehensive examination of the exchange's asset custody services. Thisdevelopment comes as the regulator intensified its claims that Binance.US has beenuncooperative in providing requested documents.
