Binance.US Suspends USD Deposits, Triggers Market Turmoil

Key Points:

• Binance.US suspends USD deposits and fiat (USD) withdrawal channels as early as June 13 due to “extremely aggressive and intimidating tactics” from the SEC.
• USD trading pairs will be delisted next week, but Binance.US will continue to support USDT (Tether) trading pairs.
• Any USD left on the exchange may be converted into a stablecoin that can be withdrawn on-chain. Binance.US plans to transition to a crypto-only exchange but maintains a 1:1 ratio for customer assets.

Binance.US has recently announced that it will be halting USD deposits and notifying its customers of an incoming suspension to fiat (USD) withdrawal channels as early as June 13.

This decision comes after the United States Securities and Exchange Commission (SEC) used “aggressive and intimidating tactics” against the company, according to a statement made by Binance.US on June 9.

As a precautionary measure, Binance.US will be suspending USD deposits in an effort to protect its customers and platform while it transitions to a crypto-only exchange. Additionally, the company is notifying its customers that its banking partners are preparing to pause fiat (USD) withdrawal channels as early as June 13, 2023.

Despite the suspension of USD-related transactions, trading, staking, deposits and withdrawals in cryptocurrencies remain fully operational. Binance.US maintains a 1:1 ratio for customer assets and plans to continue supporting USDT (Tether) trading pairs.

The SEC’s “ideological campaign against the American digital asset industry” has presented significant challenges for Binance.US and its banking partners, who have signaled their intent to sever fiat on-ramps to the exchange. In response to the SEC’s actions, Binance.US has delisted several trading pairs and plans to delist all USD trading pairs next week, with the exception of USDT (Tether) trading pairs.

It should be noted that any downtime in processing withdrawals going forward “may be the result of elevated volumes and weekend bank closures.” Binance.US advises customers to convert any USD left on the exchange into a stablecoin that can be withdrawn on-chain.

Binance.US’s decision to suspend USD-related transactions is a response to the SEC’s actions against the company. While this suspension may cause inconvenience for its customers, the platform remains fully operational for cryptocurrency-related transactions.

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