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Binance.US suspends USD deposits, warns of fiat withdrawal pause

Binance.US has made a significant announcement regarding its operations in response to pressure from the United States Securities and Exchange Commission (SEC). The exchange has decided to temporarily suspend U.S. dollar deposits and informed its customers that fiat (USD) withdrawal channels may be paused as early as June 13, 2023.

This action comes as a result of what Binance.US described as “extremely aggressive and intimidating tactics” from the SEC. The company is taking these measures in order to safeguard its customers and the platform itself. Binance.US also revealed its intention to become a crypto-only exchange while maintaining a 1:1 ratio for customer assets, providing assurance about the safety of user holdings.

The notice from Binance.US also mentioned the possibility of delays in processing withdrawals due to increased transaction volumes and weekend bank closures. However, the exchange clarified that trading, staking, deposits, and withdrawals in cryptocurrencies will continue to operate without any disruptions.

The SEC’s ongoing campaign against the American digital asset industry has created numerous challenges for Binance.US and its banking partners. In response, these partners have indicated their intention to sever the fiat on-ramps to the exchange. Consequently, Binance.US announced that USD deposits will be suspended starting from June 9, and USD trading pairs will be delisted in the following week. However, the exchange will continue to support trading pairs with the stablecoin Tether (USDT). The announcement further advised customers that any remaining USD on the platform can be converted into a stablecoin and withdrawn on-chain.

In addition to these developments, Binance.US recently delisted ten trading pairs, including eight Bitcoin (BTC) pairs and two Binance USD (BUSD) pairs. The exchange temporarily paused its OTC Trading Portal services as well. It’s worth noting that BTC had been trading at a premium on the U.S. exchange earlier in May.

On June 6, the SEC issued an emergency order to freeze the assets of Binance.US. However, the next day, the exchange assured its customers that their assets were secure, and the platform continued to operate normally, with deposits and withdrawals functioning without any issues.

As Binance.US navigates these regulatory challenges, it is taking proactive steps to adapt its operations and address the concerns raised by the SEC. Customers are advised to stay informed about the evolving situation and manage their assets accordingly during this period of transition.

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