Binance to Suspend USD Bank Transfers Worldwide; What’s the Deal?
Binance, the largest cryptocurrency exchange, has announced that it will temporarily stop withdrawals and deposits of US dollars using bank accounts. However, it will be looking to restore these services in the near future. According to the latest Binance news this week, the suspension will be in effect starting Wednesday.
Binance suspends USD
Binance representatives stated that while the U.S. Dollar will experience some disruptions in exchange operations, other fiat currencies such as euros will not be affected. Alternative payment methods for buying and trading cryptocurrencies such as credit cards, Google Pay, and Apple Pay, would not be affected.
The official was quoted as saying the following while speaking about the suspension:
It is worth noting that only 0.1% of our monthly active users leverage USD banking transfers. However, we are working hard in order to restart service as soon possible.
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“We are still overwhelmingly net-positive for net deposits. According to the spokesperson, outflows are always higher when prices begin to level off after a bullish market swing such as we saw last week with some users taking profits.”
BinanceUS remains unaffected
The ban will not affect Binance US, a division within the firm that is supervised by the Financial Crimes Enforcement Network, (FinCEN), of the Treasury Department. The ban will not affect clients from non-U.S. who transfer money to and from bank accounts in dollars.
Federal regulators have issued a warning about the dangers of doing business with cryptocurrency companies following the failure of FTX. Web3 firms have had difficulty finding crypto-friendly partners in the past. The latest crypto crisis has made it even harder. Binance announced last month its banking partner Signature Bank would handle user transactions exceeding $100,000. The lender will also reduce its exposure to digital assets exchanges. The financial institution headquartered in New York City also announced that it plans to withdraw up to $10 billion from customers who have made deposits in cryptocurrency.
Binance’s native crypto-token BNB-mainly used to pay trading fees on the exchange-has not been affected by recent Binance news. It currently trades at $329.
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