In recent news, Binance.US, the independent subsidiary of popular crypto exchange Binance, announced that it has successfully resolved its U.S. dollar withdrawal issues after collaborating with its banking partners. While this brings relief to customers who were facing delays in withdrawing their funds, Binance.US warns that this relief may be short-lived. In this article, we will delve into the details of the situation, the impact on customers, and what the future holds for the exchange.
The Background
On June 9, Binance.US suspended dollar deposits and informed its customers about an impending pause in fiat withdrawal channels due to its ongoing battle with the Securities and Exchange Commission (SEC). The exchange had also cautioned that its banking partners might discontinue fiat withdrawal services as early as June 13. However, this expected disruption did not materialize.
In a recent update on June 22, Binance.US assured its customers that its system remains fully operational and that U.S. dollar withdrawal requests are expected to revert to their normal five-business-day turnaround time. The exchange encouraged customers with failed withdrawal attempts to resubmit their requests, emphasizing that their systems are fully functional. However, they also issued a word of caution, stating that the relief may not be permanent.
"While USD withdrawal remains fully operational on the platform today, we expect our banking partners to discontinue that service in the near future." - Binance.US
Transition to a Crypto-only Exchange
As Binance.US navigates its ongoing battle with the SEC, the exchange is preparing for a transition to a crypto-only platform. They have advised their users to utilize, withdraw, or convert their USD into stablecoins to continue crypto-to-crypto trading. To facilitate this transition, Binance.US will remove select USD Advanced Trading pairs from their platform on June 26 at 8 p.m. PDT / 11 p.m. EDT.
Reminder: As we transition to a crypto-only exchange, Binance.US will remove select USD Advanced Trading pairs from our platform on 6/26 at 8 p.m. PDT / 11 p.m. EDT.
While USD withdrawals remain fully operational, we encourage you to use, withdraw, or convert your USD to stablecoins to continue trading.
Conversion of USD Balances
Binance.US has also informed its customers that any remaining USD balances held in their accounts may be converted into Tether (USDT) at a future date. Tether is a popular stablecoin that is pegged to the value of the U.S. dollar, providing stability and liquidity within the crypto market. This option allows customers to retain the value of their funds while navigating the transition to a crypto-only exchange.
Expansion of Trading Pairs
In addition to the transition to a crypto-only exchange, Binance.US has revealed plans to expand its trading pairs. On June 26, the exchange will introduce more USDT trading pairs, including ANKR, DAI, DASH, HBAR, ICX, IOTA, RVN, WAVES, XNO, XTZ, and ZIL. These new trading pairs will provide customers with a broader range of options for crypto-to-crypto trading. However, it is important to note that Binance.US will remove most USD Advanced Trading pairs from the platform on the same date.
Of the 150 crypto assets supported by Binance.US, only BTC, ETH, ADA, BNB, LTC, MATIC, SOL, VET, USDC, and USDT will remain tradable against the dollar. This streamlining of trading pairs reflects Binance.US's shift towards a more focused and crypto-centric approach.
Challenges with Banking Partners
Binance.US is not the only branch of the Binance exchange to face challenges with its banking partners. In May, the Australian branch experienced a significant setback when local banking and payments partners suspended their services. This resulted in #bitcoin prices falling to a 20% discount on #Binance Australia, leading to a rush among customers to sell and cash out their holdings. These challenges highlight the complex relationship between cryptocurrency exchanges and traditional financial institutions, which can have a direct impact on user experience and market dynamics.
The Future of Binance.US
As Binance.US resolves its USD withdrawal issues and prepares for its transition to a crypto-only exchange, the future remains uncertain. The ongoing battle with the SEC continues to cast a shadow over the operations of the exchange, and the potential discontinuation of USD withdrawal services by banking partners adds to the challenges. However, Binance.US remains resilient, assuring its customers that its system is fully operational for now.
It is crucial for Binance.US customers to stay updated on the latest developments and follow the guidance provided by the exchange. Utilizing stablecoins and exploring the expanding range of trading pairs will be essential for those looking to continue trading on the platform. As the crypto market evolves and regulations continue to shape the industry, Binance.US, like other exchanges, will need to adapt and find innovative solutions to ensure a seamless user experience.