Binance.US, the American affiliate of cryptocurrency exchange Binance, has announced the suspension of United States dollar deposits and has notified its customers of an impending pause in fiat (USD) withdrawal channels starting as early as June 13. The decision comes in response to what Binance.US described as “extremely aggressive and intimidating tactics” from the United States Securities and Exchange Commission (SEC).
In an effort to safeguard its customers and platform, Binance.US is suspending USD deposits and informing customers that its banking partners are preparing to halt fiat (USD) withdrawal channels. The company plans to transition to a crypto-only exchange while maintaining a 1:1 ratio for customer assets. It also warned that any delays in processing withdrawals in the future could be due to increased volumes and weekend bank closures.
However, trading, staking, deposits, and withdrawals in cryptocurrencies will continue to operate without interruption. Binance.US attributes the challenges it and its banking partners face to the SEC’s “ideological campaign against the American digital asset industry.” The banking partners have indicated their intention to sever fiat on-ramps to the exchange.
Effective June 9, U.S. dollar deposits will be suspended, and USD trading pairs will be delisted in the following week, excluding Tether (USDT) trading pairs. Any remaining USD on the exchange may be converted into a stablecoin that can be withdrawn on-chain. Binance.US previously delisted eight Bitcoin (BTC) pairs and two BUSD (Binance USD) pairs on June 8, while temporarily pausing OTC Trading Portal services. It’s worth noting that Binance.US experienced a premium on BTC trading in early May.
On June 6, the SEC issued an emergency order to freeze the assets of Binance.US, but the exchange reassured customers the next day that their assets remained safe and that the platform was fully operational, with deposits and withdrawals functioning normally.
Binance.US has faced challenges in securing banking partners, as previously reported by Cointelegraph in April.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up