The largest cryptocurrency exchange in the world, Binance, has announced that it would temporarily halt deposits and withdrawals of US dollars using bank accounts, but will seek to reinstate these services in the near future. According to the latest Binance news, this suspension will take effect from Wednesday of this week.
Binance Suspends USD
A representative from Binance stated that although the U.S. Dollar would see some disruptions in the exchange’s operations, other fiat currencies, such as euros, will not be impacted in any way. Moreover, alternative payment methods used to buy and trade cryptocurrencies, like credit cards, Google Pay and Apple Pay would remain unaffected.
While speaking on the suspension, the official was quoted as saying:
It’s worth noting that only 0.01% of our monthly active users leverage USD bank transfers, but that we are working hard to restart service as soon as possible.
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“We’re still overwhelmingly net-positive on net deposits. Outflows always tick up when prices start to level off following a bullish market swing like we saw last week as some users take profits.”, the spokesperson said.
BinanceUS Remains Unaffected
However, Binance US, a division of the firm that is overseen by the Financial Crimes Enforcement Network (FinCEN) of the Treasury Department, will not be affected by the ban. Only non-U.S. clients who transfer money to or from bank accounts in dollars are affected by the change.
Following the failure of FTX, federal regulators have issued a warning to banking institutions about the dangers of conducting business with cryptocurrency companies. Already, Web3 firms in general have faced difficult time locating crypto-friendly banking partners and the latest crypto debacle has made it even more difficult. Binance announced last month that its banking partner Signature Bank will handle user transactions worth more than $100,000 while the lender reduces its exposure to digital-asset exchanges. In addition, the financial institution with its headquarters in New York City announced in December that it has the intention of withdrawing up to $10 billion in deposits from cryptocurrency customers.
The price of BNB, which is Binance’s native crypto token–mostly used for paying trading fees on the exchange–remained relatively unscathed by this recent Binance news and is currently trading at roughly $329.
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