Binance.US, the US subsidiary of Binance, is temporarily suspending fiat currency deposits and withdrawals on its platform in response to the SEC’s actions. This decision is intended to ensure the safety of its customers’ funds, according to the company. At the same time, Binance.US will continue to offer cryptocurrency-related services and assures that its customers’ funds are insured at a 1:1 ratio.
Binance.US suspends fiat deposits and withdrawals
Following the Securities and Exchange Commission’s (SEC) crusade against Binance, the US branch of the exchange has decided to halt dollar deposits on its platform from today. At the same time, customers will no longer be able to make withdrawals in fiat currency from 13 June.
The American exchange, which has been accused of links with Binance by the SEC and more recently by US senators, claims that this decision has been taken to protect its customers. Its banking partners, already weakened by the numerous bankruptcies in the crypto ecosystem last year, are preparing to stop serving the platform for USD withdrawals and deposits.
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
Through its press release, Binance.US states that any potential delays in withdrawals of fiat currency by its customers would only be the result of high transaction volumes, and that its customers’ assets are fully insured. In addition, the exchange will temporarily go into “crypto only” mode, and the cryptocurrency-related services it offers will continue to operate as normal:
Our priority is, and always has been, our customers. We are taking these proactive steps as we transition, for a time, to a cryptocurrency-only exchange. To be clear, we maintain 1:1 reserves for all customer assets. Any downtime in processing withdrawals may be the result of high volumes and weekend bank closures. In addition, crypto trading, staking, deposits and withdrawals remain fully operational. “
Recently, the SEC requested that funds hosted on Binance.US be frozen. Representatives from both sides are due to meet in court on 13 June to clarify the situation, the same day that fiat transactions on the platform were put on complete halt.
