The largest cryptocurrency exchange in the world, Binance, said on Monday that it would stop accepting deposits and withdrawals in the U.S. dollar. The business gave no explanation for the move.
As of February 8th, They are temporarily suspending USD bank transfers, a representative of Binance stated. Customers who are affected are being informed directly. The company noted that they are working diligently to reinstate service as quickly as possible and stated that 0.01% of its monthly active users leverage USD bank transactions.
The company’s subsidiary Binance US, which is subject to regulation by the Financial Crimes Enforcement Network of the Treasury Department, stated in a tweet that it is unaffected by the ban. The modification affects customers who transfer money to or from bank accounts.
The company’s subsidiary Binance US, which is subject to regulation by the Financial Crimes Enforcement Network of the Treasury Department, stated in a tweet that it is unaffected by the ban. The adjustment only applies to non-U.S. clients who transfer money in dollars to or from bank accounts.
Data show that after the announcement, withdrawals from Binance’s cryptocurrency wallets significantly increased as millions of stablecoins linked to dollars, such as tether and USDC, moved to other exchanges or private wallets.
Based on the information, Binance’s net outflow of U.S. dollar for the day was above $172 million. For a business with crypto assets valued at $42.2 billion, that sum is a little.
According to the representative, They are still massively net-positive on net deposits. As some consumers take profits after a bullish market swing like the one that occurred last week, outflows always increase as prices begin to level off. Its greatest month since October 2021, January saw a rise of more than 38% for bitcoin.
The news did not have a significant impact on Binance’s exchange token, BNB, which maintained its price of $328.
Binance said in late January that U.S. banking partner Signature Bank had raised the limit for U.S. dollar transactions to $100,000. When this happened, Binance said that Signature had informed the exchange that the new requirement extended to all users of cryptocurrency exchanges.
A Binance spokesman stated that “Binance.US has its own banking partners and does not have any concerns.” Users from the United States cannot utilize the main Binance exchange.
Customers can still buy cryptocurrency with other fiat currencies or payment methods, according to Binance.
