Users cannot withdraw USD without first converting it to stablecoins or another digital asset.
Binance US notified users of the update via email and provided detailed instructions.
Binance US has implemented fundamental changes to its financial activities in the USA. The exchange is no longer allowing users to make direct withdrawals in US dollars as of this week.
As stated in their revised terms of service, they will no longer let users withdraw USD without first converting it to stablecoins or another digital asset. Importantly, unlike conventional financial guarantees, US currency deposits are no longer covered by the Federal Deposit Insurance Corporation (FDIC).
Regulatory Concerns
The decision comes after months of increased scrutiny from US authorities, which has presented the corporation with significant operating obstacles. Binance US has been the target of several lawsuits over its financial dealings, prompting a review of its offerings. As a result, dollar deposits were frozen this summer, a prelude to the present withdrawal restriction.
Customers will have to adjust how they get at their funds because of the alterations. There will be no option for cashing out in US currency. To withdraw dollars, users must first convert their funds to another digital asset or stablecoin. Binance US notified users of the update via email and provided detailed instructions for the new procedure.
The company’s problems, however, extend beyond only regulatory ones. After the SEC took strong action, banking partners were hesitant to maintain ties. This fallout, initiated by a June SEC complaint, highlights the difficult climate in which crypto exchanges like Binance US operate.
Binance’s problems aren’t exclusive to the United States. The firm is no longer accepting new UK customers. This decision came quickly after its UK promotional partner, Rebuilding Society, was hit with new regulations from the Financial Conduct Authority (FCA).
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