Blockchain News

Binance Announces Temporary Suspension of USD Bank Transfers

The ban is only expected to effect a small percentage of Binance’s user base.

Binance, the world’s largest cryptocurrency exchange, stated on Monday that it will suspend all USD deposits and withdrawals from bank accounts beginning February 8.

The firm has stated that it would endeavor to reactivate the function as soon as feasible.

Binance did not provide any explanation for the ban after it was announced on Twitter. It did, however, clarify that the pause would only effect a tiny percentage of its user base.

All other ways of purchasing and selling cryptocurrency through the exchange will continue to work, including credit cards, Apple Pay, Google Pay, and bank transfers using other fiat currencies, like as euros.

“It’s worth mentioning that just 0.01% of our monthly active customers utilize USD bank transfers, but we’re working hard to get service back up and running as quickly as possible,” a Binance spokeswoman told Bloomberg in an email.

Binance is also unaffected by the proposals.

Clients in the United States – the only firm between the two has authorisation to serve users in the United States. “We will NOT be stopping $USD withdrawals and deposits on February 8,” the business tweeted on Monday. ”

The bankruptcy of FTX, previously Binance’s largest overseas rival, has made banks wary of forming agreements with cryptocurrency startups, after government regulators issued cautions against such collaborations.

While some banks are abandoning support for cryptocurrency, others are going in, according to Binance CEO Changpeng Zhao in response to the statement. “Some difficulties were anticipated as a result of last year’s happenings.”

CZ said that the hold on USD bank transfers is still a “poor user experience,” notwithstanding its modest impact on clients.

Binance said in January that one of its financial partners, Signature Bank, will no longer accept fiat to crypto transactions worth less than $100,000. The lender aims to reduce its exposure to cryptocurrency markets by withdrawing up to $10 billion in deposits from crypto customers.

The action was made in response to the Federal Deposit Insurance Corporation’s assertion that crypto-sector banking should be deemed a high-risk activity.


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