Binance.US, the US subsidiary of Binance, is temporarily suspending fiat currency deposits and withdrawals on its platform, in response to SEC actions. The move is to ensure the safety of its clients’ funds, she said. At the same time, Binance.US will continue to offer cryptocurrency-related services and ensures that its clients’ funds are insured at a 1:1 ratio.
Binance.US suspends fiat deposits and withdrawals
Following the Securities and Exchange Commission (SEC)-led crusade against Binance, the American branch of the exchange has decided to stop dollar deposits from today on its platform. At the same time, its customers will no longer be able to make withdrawals in fiat currency from June 13..
The American exchange, accused of connections with Binance by the SEC and more recently by American senators, claims that this decision was made in order to protect its customers. Its banking partners, already weakened by the numerous bankruptcies within the crypto ecosystem last year, are preparing to stop serving the platform for withdrawals and deposits in USD.
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 claims that potential delays that may occur in fiat withdrawals by its customers would only result from high transaction volumes, and that the assets of its latter are fully insured. In addition, the exchange will temporarily switch to “crypto only” mode, and the cryptocurrency services it offers continue to operate normally:
“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 client assets. Any downtime in processing withdrawals may be the result of high volumes and weekend bank closures. Additionally, crypto trading, staking, deposits and withdrawals remain fully operational. »
Recently, the SEC requested that funds hosted on Binance.US be frozen. Representatives of both parties are due to meet in court on June 13 to clarify the situation.the same day as the total shutdown of fiat transactions on the platform.
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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