Binance, the world's largest cryptocurrency exchange, said that as of February 8, customers will no longer be able to deposit and withdraw funds directly in U.S. dollars through bank transfers, citing an increasing number of banking institutions trying to reduce their exposure to the cryptocurrency market. exposure.
This does not apply to other deposit and withdrawal methods such as credit cards, Google Pay and Apple Pay. In addition, bank transfers using other fiat currencies such as Euros, as well as Binance US customers are not affected. A Binance spokesperson said in a statement:
It's worth noting that only 0.01% of our monthly active users use USD bank transfers, but we will be restarting the service as soon as possible.
A Binance spokesperson did not specify which banking partner caused the suspension or when exactly U.S. dollar bank transfers would resume.
However, Binance said last month that due to one of the exchange's partner banks, Signature Bank, adjusting the minimum cryptocurrency transaction limit, some Binance users with transaction amounts of less than $100,000 will not be able to buy and sell crypto through SWIFT transfers. currency. Binance also revealed at the time that “only 0.01% of our average monthly users are served by Signature Bank.”
After the collapse of now-bankrupt cryptocurrency exchange FTX last year, U.S. federal regulators warned major banks that doing business with cryptocurrency companies was risky.
Changpeng Zhao, CEO of Binance, said in response to the above announcement that while some banks "are withdrawing support for cryptocurrencies, others are also getting involved at the same time" and "last year's events are expected to cause some setbacks."
Data from Arkham Intelligence shows that Binance’s outflows surged immediately after the announcement, with estimates of millions of dollars in stablecoins flowing to other cryptocurrency exchanges or personal wallets. However, Arkham also pointed out that this is just a drop in the bucket for a company that owns $42.2 billion in crypto assets at a premium.
According to data from DefiLlama, Binance’s net dollar outflows for the day exceeded $172 million.
This article Binance suspends "USD transfer" deposits and withdrawals! Spokesperson: Strive to restore services as soon as possible first appeared on Block Guest.