Binance.US, the United States arm of the cryptocurrency exchange Binance, has announced the suspension of U.S. dollar deposits and upcoming fiat (USD) withdrawal pauses.
The move comes as a response to what the company describes as "extremely aggressive and intimidating tactics" from the United States Securities and Exchange Commission (SEC).
In a notice issued on June 9, Binance.US stated that it is taking action to protect its customers and platform. Binance.US has announced the suspension of USD deposits and forthcoming pause of USD withdrawal channels starting from June 13, 2023. The exchange intends to transition to a crypto-only platform, ensuring a 1:1 ratio for customer assets.
Binance.US explained that any delays in processing future withdrawals might occur due to high volumes and weekend bank closures. Despite the suspension of USD deposits and impending pause of USD withdrawal channels, Binance.US assures users that trading, staking, as well as deposits and withdrawals in cryptocurrencies, will remain fully operational on the platform.
The company attributed the decision to the SEC's "ideological campaign against the American digital asset industry," which has posed increasing challenges for Binance.US and its banking partners. These partners have indicated their intention to sever fiat on-ramps to the exchange.
Binance.US Implements Measures: USD Deposits Suspended, Delisting of Trading Pairs
As part of the measures, Binance.US will suspend USD deposits from June 9 and delist USD trading pairs in the coming week. However, it will still support USDT (Tether) trading pairs. Users who have remaining USD on the exchange will have the option to convert it into a stablecoin, which can then be withdrawn on-chain.
On June 8, Binance.US had already delisted ten trading pairs, including eight BTC pairs and two BUSD pairs, while temporarily pausing OTC Trading Portal services. In early May, BTC had been traded at a premium on the U.S. exchange.
On June 6, the SEC took emergency action to freeze the assets of Binance.US. However, the company reassured customers the following day that their assets remained safe and that the platform was fully operational, with deposits and withdrawals functioning normally.
Binance.US has been facing challenges in securing banking partners, as previously reported by Cointelegraph in April.
The recent actions by Binance.US reflect the growing regulatory scrutiny and pressure faced by cryptocurrency exchanges, particularly in the United States. As the industry navigates these challenges, customers are advised to stay updated and consider alternative platforms and strategies to protect their assets.
Also read- Bitcoin Magazine Founder's Advice: Withdraw Funds from Exchanges for Protection
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