Binance America Stops All USD Withdrawals, What's Up?
Amid increasing regulatory scrutiny regarding crypto assets in the United States, Binance.US has officially stopped all US Dollar (USD) withdrawals. This important step comes as a result of modifications to the platform's terms of service that recently went into effect. This was reported by watcher.guru's X platform account, Wednesday (18/10/2023).
Binance also communicated this announcement message to users via email, and this change now requires Binance.US customers to convert their dollars into stablecoins or other digital assets before initiating withdrawals. Additionally, the updated terms explicitly state that deposits in US Dollars are no longer insured by the FDIC.
For background, the FDIC was launched in 1933 during the Great Depression to protect Americans from losing their funds when their banks collapsed. Since its launch, leading financial institutions, including crypto-related companies have utilized the service to insure their customers' funds.
However, the Federal Trade Commission (FTC) recently warned that FDIC insurance only covers bank deposits and not funds held at crypto-related companies.
âPlease be aware that crypto deposits are not insured by the FDIC. "If something happens, the government may have no obligation to step in and help return investors' money," the FTC said in a statement.
