BinanceUS, the U.S. trading affiliate of cryptocurrency exchange giant Binance, has revealed that its banking partners will no longer process dollar payments starting from the day a federal judge considers a temporary restraining order against the company. This announcement follows the recent lawsuit filed by the Securities and Exchange Commission (SEC) against Binance, BinanceUS, and CEO Changpeng Zhao. The SEC seeks to freeze BinanceUS’ assets, but it has also requested the court to approve a temporary restraining order that would permit the exchange to continue processing customer withdrawal requests.
The mounting regulatory pressure has presented difficulties for the banks collaborating with BinanceUS, prompting the exchange to take action. In a Twitter statement, BinanceUS explained that, in order to safeguard its customers and platform, it has suspended USD deposits and informed users that its banking partners are preparing to temporarily halt the withdrawal of fiat currency (USD) as early as June 13, 2023. The exchange advised customers to take appropriate measures regarding their USD holdings.
In a notice posted on Twitter, BinanceUS further disclosed that it will begin delisting USD pairs, such as BTC-USD, from its platform while still supporting stablecoin pairs like BTC-USDT. Customers were encouraged to withdraw their USD funds via bank transfer before June 13, 2023, with a cautionary note that ACH withdrawals may experience delays due to high transaction volumes and weekend bank closures.
BinanceUS emphasized that these actions are proactive measures taken during a temporary transition to become a crypto-only exchange. The exchange clarified that it maintains a 1:1 reserve for all customer assets, reassuring users about the safety of their holdings.
Furthermore, BinanceUS had already announced earlier on the same day that it would remove ten different trading pairs in response to the SEC lawsuit.
As BinanceUS faces legal challenges and regulatory scrutiny, it is implementing these changes to address the concerns raised by the SEC and to ensure the security and continuity of its operations. Users are urged to stay informed and take the necessary steps to manage their assets accordingly during this transitional period.