Binance.US on Thursday announced that its banking partners will stop processing its dollar payments, starting early next week.
What Happened: This news comes just days after the Securities and Exchange Commission (SEC) announced a lawsuit against the firm as well as Binance and its CEO, Changpeng Zhao.
The SEC has requested a freeze on Binance.US’ assets, but has asked the court to approve a temporary restraining order that would permit BinanceUS to continue processing withdrawal requests from customers.
Due to increased regulatory pressure, Binance.US said that its banking partners are facing challenges, which have compelled the exchange to suspend USD deposits and prepare to pause fiat (USD) withdrawal channels as early as June 13, 2023.
"In an effort to protect our customers and platform, today we are suspending USD deposits and notifying customers that our banking partners are preparing to pause fiat (USD) withdrawal channels as early as June 13, 2023. We encourage customers to take appropriate action with their USD," Binance's official US handle tweeted.
The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry. https://t.co/AZwoBOgsqS and our business partners have not been spared in the use of these tactics, which has created… pic.twitter.com/rlIe6swIoY
— Binance.US 🇺🇸 (@BinanceUS) June 9, 2023
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Why It Matters: The exchange will also start delisting USD pairs and limit trading to stablecoin pairs.
Customers who withdraw USD via bank transfer may experience longer waiting periods due to elevated volumes and possible weekend bank closures.
Meanwhile, Binance.US is also suspending trading services for several crypto tokens effective Thursday. The suspension affects a wide array of trading pairs, including more than 90 tether pairs, eight Bitcoin (CRYPTO: BTC) pairs and two Binance USD pairs.
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