The US arm of Binance has suspended all direct USD withdrawals. The company made this known in an update to their terms of service on Monday.
Also Read: Binance Exits Russia Over Sanctions Violations Investigations!
No More Direct USD Withdrawals
According to the company, the USD deposits in the wallets of Binance.US clients are no longer under the protection of the FDIC insurance. As such, the company can’t continue processing direct USD withdrawals.
Users can still get access to their funds, though, by first converting their USD holdings into a stablecoin. “In the event that customers wish to withdraw U.S. dollar funds from their account,” Binance.US said, “they may do so by converting U.S. dollar funds to stablecoin or other digital assets, which can subsequently be withdrawn.”
Also Read: Gary Gensler Faces Scrutiny Over Crypto Conflicts
Binance had already halted direct USD deposits in June after the frustration they received from the United States SEC. The crypto exchange said the SEC resorted to “extremely aggressive and intimidating tactics” to frustrate the crypto industry.
SEC Chair, Gary Gensler, has also not made his negative opinions about the crypto industry hidden. He once said the Cryptocurrency industry plagued by fraud and misconduct.
As Binance.US suspends USD withdrawals, individuals who are still using the platform should begin to get more wary until the entire US-SEC and Binance US saga is over.
Until then, we’ll be here to give you updates.
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