- Binance.US suspends USD deposits and warns of potential pause to USD withdrawal channels due to SEC pressures.
- The company hints at transitioning to a crypto-only exchange while maintaining a 1:1 ratio for customer assets.
In a move indicative of the mounting regulatory pressure, Binance.US, the United States arm of the leading cryptocurrency exchange, has declared a halt to U.S. dollar deposits. It has also alerted its patrons of a probable suspension to fiat (USD) withdrawal pathways as early as June 13, 2023.
On June 9, Binance.US revealed these actions were taken in response to the “extremely aggressive and intimidating tactics” employed by the United States Securities and Exchange Commission (SEC). As part of a protective measure for its clientele and platform, Binance.US decided to suspend USD deposits and forewarned its customers that their banking associates might cease fiat (USD) withdrawal channels.
The company intends to evolve into a crypto-only exchange while preserving a 1:1 ratio for customer assets. It further signaled any impending delay in processing withdrawals might be due to escalated volumes or weekend banking services unavailability. Despite these alterations, the company confirmed that trading, staking, deposits, and withdrawals in cryptocurrencies remain fully functional.
This move arises amidst what Binance.US perceives as the SEC’s
“ideological campaign against the American digital asset industry.”
The company and its banking partners have confronted escalating obstacles, leading to indications from the latter to terminate fiat on-ramps to the exchange.
Effective June 9, USD deposits will be suspended, and USD trading pairs will be delisted the following week. Nevertheless, the firm will continue to support Tether (USDT) trading pairs. The exchange has advised its customers to convert any remaining USD into a stablecoin, which can then be withdrawn on-chain.
On June 8, Binance.US delisted ten trading pairs, eight Bitcoin (BTC) pairs, and two BUSD pairs, and also paused OTC Trading Portal services. Despite the SEC’s emergency order on June 6 to freeze Binance.US’s assets, the firm reassured its clients that their assets were secure, and that the platform remains fully operational, with deposits and withdrawals functioning as expected.
