Binance.US has recently updated its terms of use, resulting in the discontinuation of direct dollar withdrawals from the platform. As per the email notification, customers who wish to withdraw U.S. dollar funds from their account may do so by converting them to stablecoin or other digital assets, which can subsequently be withdrawn.
The suspension of dollar deposits was announced by the firm in early June, citing the SEC's aggressive and intimidating tactics against the crypto industry as the reason for banking partners' reluctance to engage with the sector. Binance.US has also warned customers that its banking partners may pause dollar withdrawals as early as June 13. The SEC has sued Binance.US, Binance's international arm, and its founder Changpeng "CZ" Zhao, for allegedly operating unregistered securities platforms.
The company's custody practices and willingness to cooperate in legal requests have also been questioned by the SEC. Binance has lost its euro payments partner last month, and a replacement is yet to be announced. Furthermore, the recent update to the terms of use states that U.S. dollar funds in Binance.US wallets are no longer protected by deposit insurance provided by the Federal Deposit Insurance Corporation (FDIC).
