Binance.US Bans Direct U.S. Dollar Withdrawals, Requires Conversion to Digital Assets
Major cryptocurrency exchange Binance.US has announced a significant change in its terms of service, prohibiting direct U.S. dollar withdrawals. Instead, users must now convert their dollars into stablecoins or other digital assets before making a withdrawal.
Regulatory Pressures Prompt Binance.US to Suspend U.S. Dollar Withdrawals
Due to intensified scrutiny of the crypto sector by the U.S. Securities and Exchange Commission (SEC), Binance.US suspended U.S. dollar deposits earlier this year in June. This regulatory pressure caused hesitation among Binance.US’s banking partners, leading them to distance themselves from the crypto industry. As a result, direct U.S. dollar withdrawals have now been banned.
SEC Legal Action and Lawsuits Add to Binance.US Challenges
Legal action has been initiated by the SEC against Binance.US, its parent company Binance, and CEO Changpeng Zhao for operating unregistered securities operations. This ongoing issue is expected to be a key discussion point at the upcoming Benzinga’s Future of Digital Assets conference. Additionally, Binance.US has faced lawsuits related to its transactions and recently severed ties with its euro payments collaborator, without announcing a successor.
Revised Terms of Service and Departure from Standard Financial Protections
The revised terms of service represent a significant departure from standard financial protections. Previously, Binance.US’s U.S. dollar deposits were insured by the Federal Deposit Insurance Corporation (FDIC). However, customers are now obligated to convert their USD into stablecoins or other digital currencies before proceeding with a withdrawal. This change was communicated to customers via email as part of the exchange’s comprehensive service reassessment.
This article provides a detailed overview of the recent ban on direct U.S. dollar withdrawals by Binance.US. It highlights the regulatory challenges faced by the exchange, including the SEC legal action and lawsuits. The revised terms of service and the impact on customers are also discussed. Stay informed about the evolving crypto landscape as Binance.US adapts to regulatory pressures.
