Recently, Binance US, a renowned cryptocurrency platform, took a step towards discontinuing the withdrawal of funds in U.S. dollar by its users, mandating the use of alternate methods such as stablecoins or different cryptocurrencies for subsequent withdrawal.
Redefining Withdrawal Procedures at Binance US
Associated with leading crypto exchange Binance, the U.S. branch known as Binance US underwent changes in its operational terms. The functioning of Binance US’s trading interface is managed by BAM Trading Services which is partnered with Binance itself.
The crypto exchange platform based in the U.S. clarified the options for users to access their dollar funds, introducing BAM-issued value wallets. These wallets are denominated in U.S. dollars and termed as BAM Fiat Wallets. Justifying this recent implementation for U.S. dollar withdrawal, Binance US elaborated:
One’s funds in US dollars could be translated into an equivalent stablecoin or cryptocurrency, allowing a following, feasible withdrawal; a necessary condition when intending to make a dollar withdrawal from one’s account.
Sometime in June, deposits in U.S. dollars were temporarily halted by Binance US, as an effect of a judicial order driven by the U.S. Securities and Exchange Commission (SEC). The order aimed at freezing the exchange’s assets. Moreover, anticipation of an impending pause in USD withdrawal channels by its banking partners was cited by the exchange. Although the exchange saved itself from asset freezing, a decrease in its share of U.S. crypto trading volume has been noticeable.
Then, on July 17, the withdrawals in U.S. dollars were re-established. Even so, users were still guided by the exchange to resort to their USD Fiat balance conversion into stablecoins for seamless crypto-to-crypto trading on the platform. Following the guidance, the exchange warned: “Any dollars, unused, in your wallets might be translated into USDT later on.”
Charges were filed by SEC against Binance, its CEO Changpeng Zhao (CZ), and BAM Trading Services in June. The charges of unlawful exchanges, broker-dealers, and clearing agencies were as many as 13.
What’s your opinion regarding Binance US now discontinuing dollar withdrawals? Feel free to share your thoughts below.
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Frequently asked Questions
1. Why has Binance US temporarily halted US dollar withdrawals?
Answer: Binance US has temporarily halted US dollar withdrawals due to a technical issue with its banking partner. This step has been taken to ensure the safety and security of users’ funds.
2. How long will the withdrawal suspension last?
Answer: The duration of the withdrawal suspension is not currently specified. Binance US is actively working with its banking partner to resolve the technical issue as quickly as possible. Updates will be communicated to users regarding the resumption of US dollar withdrawals.
3. Can users still deposit US dollars into their Binance US accounts?
Answer: Yes, users can continue to deposit US dollars into their Binance US accounts without any interruption. The temporary withdrawal suspension only affects the ability to withdraw US dollars from the platform.
4. Are cryptocurrencies withdrawals affected by this suspension?
Answer: No, the temporary suspension specifically relates to US dollar withdrawals. Deposits, trading, and withdrawals of cryptocurrencies on the Binance US platform are not affected.
5. What steps are being taken to resolve the technical issue?
Answer: Binance US is working closely with its banking partner to identify and address the technical issue causing the withdrawal suspension. The company is committed to resolving the matter swiftly to minimize any inconvenience caused to its users.
6. Will users’ funds be affected during this temporary suspension?
Answer: Users’ funds held in their Binance US accounts will not be affected by the temporary withdrawal suspension. The funds remain safe and secure, and users can continue to trade or hold cryptocurrencies on the platform.
7. How can users stay updated on the status of the withdrawal suspension?
Answer: Binance US will provide regular updates through its official communication channels, including its website, social media platforms, and official announcements. Users are encouraged to stay tuned to these channels for the latest information regarding the resumption of US dollar withdrawals.