The U.S. subsidiary of the largest global crypto exchange has suspended dollar deposits as it expects banks to halt their transactions after it was sued by the Securities and Exchange Commission earlier this week.
Binance.US has urged customers to withdraw their US dollars from the platform or have them converted into cryptocurrencies after the SEC filed an emergency action to freeze Binance’s US assets on Thursday. The exchange said its banking partners would no longer conduct transactions
The central theses
- Binance.US has suspended US dollar deposits.
- Binance.US banking partners have also announced that they will stop processing withdrawals on behalf of the exchange as early as June 13th.
- Customers who are unable to make a withdrawal in US dollars before Binance.US banking partners stop processing withdrawals can have their funds converted into a stablecoin.
- Until new, more “stable” banking partners are found, the exchange will rely exclusively on crypto assets for deposits, withdrawals, trading and staking.
What does this mean for Binance.US customers?
According to Binance.US, the decision to suspend US dollar deposits is an attempt to protect their customers. Additionally, the crypto exchange said its banking partners are expected to block US dollar withdrawal options from the platform as early as June 13.
“We encourage customers to withdraw their USD via bank transfer (ACH) by June 13, 2023. Due to increased volume and bank closures over the weekend, ACH withdrawals may take longer than the usual process (e.g. up to several days),” the exchange tweeted.
Binance.US ensures that all customers’ assets are safe and deposits and withdrawals continue to be made via cryptocurrencies as the exchange operates on a cryptocurrency-only basis until new banking partners can be found. Trading and staking services will continue to function normally.
Customers who are unable to withdraw their US dollars from the platform in a timely manner can have these funds converted into a stablecoin, which would allow the funds to be withdrawn from the exchange. US dollar-denominated trading pairs will be delisted starting next week.
Binance, its founder Changpeng Zhao and its subsidiary Binance.US were the subject of an SEC lawsuit earlier this week for knowingly operating an unregistered securities exchange. The SEC then filed an emergency order to freeze Binance’s assets to protect US investors.
Binance.US called the SEC’s recent actions against Binance, its subsidiaries, Coinbase, Bittrex and others “extremely aggressive” and “a campaign against the American digital asset industry.”
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