Binance.US Pauses USD Deposits And Warns Of A Slowdown In Fiat Withdrawals

June 9, 2023

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Binance.US declared on June 9 that it has been obliged to take action due to “extremely aggressive and intimidating tactics” from the US Securities and Exchange Commission. Besides announcing the suspension of US currency deposits it has alerted its clients of an impending halt to fiat (USD) withdrawal channels as early as June 13. Binance.US said the actions are part of an attempt to protect clients and the platform in the face of the SEC’s “extremely aggressive and intimidating tactics.”

The company’s decision to halt the USD deposits is directed toward safeguarding its clients and platforms. Furthermore, Binance US is notifying its customers that its banking partners are also preparing to pause fiat withdrawal channels soon. Thus, the entire business of the company is intended to move towards crypto-only exchange while maintaining the required 1:1 customer-asset ratio. However, after this notification also came a warning that any future delays in processing withdrawals would be a result of increased volume and weekend bank closures.

The business claimed that US dollar deposits would be halted on June 9, and USD trading pairs will be delisted the following week; nevertheless, it will continue to support Tether trading pairs. It was said that any USD remaining on the exchange could be turned into a stablecoin that could be withdrawn on-chain.

On June 8, Binance.US delisted eight Bitcoin pairings and two BUSD pairs, indicating that OTC Trading Portal services had been halted. In early May, BTC traded at a premium on the US market.  On June 6, the SEC issued an emergency order freezing Binance.US’s assets. The next day, the company reassured consumers that their funds were secure and that the platform was still fully operational, with deposits and withdrawals working as usual.

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