Without any explanation, crypto exchange Binance said that it would suspend U.S. dollar transfers, but the company’s subsidiary, Binance US, stated in a tweet that it is unaffected by the ban.
The largest cryptocurrency exchange in the world, Binance, said on Monday that it would stop accepting deposits and withdrawals in dollars. The business gave no explanation for the move.
“We are temporarily suspending USD bank transfers as of February 8th,” said a Binance spokesperson. “Affected customers are being notified directly.” The company said “0.01% of our monthly active users leverage USD bank transfers” and added that “we are working hard to restart service as soon as possible.”
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. Only non-U.S. clients who transfer money to or from bank accounts in dollars are affected by the change.
https://t.co/gM6e3xb9BX is not affected by this suspension. Unless you see an official message from https://t.co/gM6e3xb9BX, our customers will not be affected.
— Binance.US Customer Support (@BinanceUShelp) February 6, 2023
Following the announcement, there was a substantial increase in withdrawals from Binance’s crypto wallets, according to data from Arkham Intelligence, as millions of dollar-pegged stablecoins like tether and USDC migrated to other exchanges or private wallets.
According to DefiLlama data, Binance lost almost $172 million in U.S. dollars over the day. For a business that, according to Arkham, has crypto assets valued at $42.2 billion, that is a rather small sum of money.
“We’re still overwhelmingly net-positive on net deposits,” the spokesperson said. “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.” Bitcoin rose more than 38% in January, its best month since October 2021.
The revelation had little impact on Binance’s exchange token, BNB, which remained stable at about $328.
Binance said in late January that U.S. banking partner Signature Bank had raised the minimum for dollar transactions to $100,000. Binance claimed at the time that Signature had informed the exchange that the increased requirement extended to all users of cryptocurrency exchanges.
A Binance spokesman wrote to CNBC in response to the suspension on Monday, stating that “Binance.US has its own banking partners and does not have any issues.” Users from the United States cannot use the main Binance exchange.
According to a press release, Binance US is set to acquire Voyager Digital crypto assets for $1 billion, which has resulted in BNB, which had fallen as low as $220 early on Saturday amid escalating FUD, recovering nearly all of the losses brought on by the most recent outflow fears.
Customers can still buy cryptocurrency using other fiat currencies or payment methods, according to Binance. The spokeswoman assured the few impacted individuals that “we’ll have a new partner to announce for those users in the next couple of weeks.”
Join: 👉 https://t.me/acnewspatriots
The opinions expressed by contributors and/or content partners are their own and do not necessarily reflect the views of AC.NEWS
Disclaimer: This article may contain statements that reflect the opinion of the author. The contents of this article are of sole responsibility of the author(s). AC.News will not be responsible for any inaccurate or incorrect statement in this article www.ac.news websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner. Reprinting this article: Non-commercial use OK. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.
Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.
Discussion about this post