Crypto exchange Binance US has suspended withdrawals in U.S. dollars. Users who want to withdraw their USD funds must first convert them into stablecoins or other cryptocurrencies, which can then be withdrawn.
Binance US Updates Dollar Withdrawal Policy
Binance US, the U.S.-based cryptocurrency exchange affiliated with Binance, updated its terms of use on Tuesday. The Binance US trading platform is run by BAM Trading Services Inc., an affiliate of Binance.
The U.S.-based crypto exchange explained that users can access their USD funds through BAM-issued stored value wallets denominated in U.S. dollars (BAM Fiat Wallets). Binance US emphasized:
In the event you wish to withdraw U.S. dollar funds from your account, you may convert such U.S. dollar funds to stablecoin or other digital assets, which can subsequently be withdrawn.
In early June, Binance US suspended U.S. dollar deposits following a court order initiated by the U.S. Securities and Exchange Commission (SEC) to freeze its assets. The exchange also warned at the time that its banking partners were preparing to pause USD withdrawal channels as early as June 13. While the exchange managed to avoid asset freezing, its share of the total U.S. crypto trading volume has plunged.
On July 17, Binance US announced that U.S. dollar withdrawals have been restored. However, the crypto exchange continued to advise users to “use, withdraw, or convert their USD fiat balances to stablecoins to continue crypto-to-crypto trading on the platform.” The firm cautioned: “Any remaining USD balance in your account may be converted to USDT at a future date.”
The SEC sued Binance, CEO Changpeng Zhao (CZ), and BAM Trading Services on June 5. The Securities regulator filed 13 charges against them including operating unregistered exchanges, broker-dealers, and clearing agencies.
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Source: Bitcoin
