Binance.US, a prominent crypto exchange in the United States, has announced to its customers that withdrawals in USD are temporarily suspended. The exchange stated that it no longer supports direct withdrawals in US dollars and advised customers to convert their funds into stablecoins or other cryptocurrencies in order to withdraw from their accounts.
Changes in Service Terms
The announcement from Binance.US highlighted that the changes primarily affect the BAM Fiat Wallet section, which is the firm’s USD custody service. Users can now withdraw funds using stablecoins pegged to USD, such as USDT and USDC, or other cryptocurrencies like Bitcoin and Ethereum.
Customer Concerns and Confirmation
Upon the announcement, some customers expressed concerns about the authenticity of the news. However, several crypto enthusiasts confirmed the changes, stating that Binance.US has indeed modified its terms. They also noted that the suspension of USD transactions opens up opportunities for other crypto asset transactions, including Tether, Circle USD, and various cryptocurrencies.
Lack of FDIC Insurance Protection
Binance.US reiterated in its announcement that crypto assets are not covered by the insurance protection program of the FDIC (Federal Deposit Insurance Corporation). The exchange had previously notified users that if it terminates its relationship with a USD custody provider and fails to secure another custodian promptly, it would inform customers to withdraw their USD deposits within a specific deadline. Any USD deposits remaining after the deadline would be automatically converted into stablecoins and deposited into the user’s crypto account.
Difference in Notices
There is a notable difference between the earlier notice from May and the recent October update. In May, Binance.US stated that its operator, BAM, was not associated with the FDIC or a bank, but simply an affiliate of USD custodians. The recent terms no longer include this information. Furthermore, the May upgrade clarified that the FDIC provides insurance coverage up to $250,000 per eligible person, but BAM’s failure or employee misconduct is not covered by the FDIC.
Binance.US’ Struggle with USD Deposits
The recent suspension of USD withdrawals is not the first time Binance.US has faced issues with USD operations. The exchange temporarily suspended USD deposits in June and advised users to withdraw funds promptly. It later resolved the withdrawal issue but has now suspended USD withdrawals once again. This inconsistency suggests that the exchange is struggling to maintain its fiat off-ramps and on-ramps.
Overall, Binance.US has notified its customers of the temporary suspension of USD withdrawals and provided alternative options for withdrawals using stablecoins or other cryptocurrencies. It has also emphasized that crypto assets are not protected by FDIC insurance. The exchange’s ongoing issues with USD deposits indicate challenges in maintaining fiat operations..
#Binance.US #Halts #USD #Withdrawals #Tokenhell
Changes in Service Terms
The announcement from Binance.US highlighted that the changes primarily affect the BAM Fiat Wallet section, which is the firm’s USD custody service. Users can now withdraw funds using stablecoins pegged to USD, such as USDT and USDC, or other cryptocurrencies like Bitcoin and Ethereum.
Customer Concerns and Confirmation
Upon the announcement, some customers expressed concerns about the authenticity of the news. However, several crypto enthusiasts confirmed the changes, stating that Binance.US has indeed modified its terms. They also noted that the suspension of USD transactions opens up opportunities for other crypto asset transactions, including Tether, Circle USD, and various cryptocurrencies.
Lack of FDIC Insurance Protection
Binance.US reiterated in its announcement that crypto assets are not covered by the insurance protection program of the FDIC (Federal Deposit Insurance Corporation). The exchange had previously notified users that if it terminates its relationship with a USD custody provider and fails to secure another custodian promptly, it would inform customers to withdraw their USD deposits within a specific deadline. Any USD deposits remaining after the deadline would be automatically converted into stablecoins and deposited into the user’s crypto account.
Difference in Notices
There is a notable difference between the earlier notice from May and the recent October update. In May, Binance.US stated that its operator, BAM, was not associated with the FDIC or a bank, but simply an affiliate of USD custodians. The recent terms no longer include this information. Furthermore, the May upgrade clarified that the FDIC provides insurance coverage up to $250,000 per eligible person, but BAM’s failure or employee misconduct is not covered by the FDIC.
Binance.US’ Struggle with USD Deposits
The recent suspension of USD withdrawals is not the first time Binance.US has faced issues with USD operations. The exchange temporarily suspended USD deposits in June and advised users to withdraw funds promptly. It later resolved the withdrawal issue but has now suspended USD withdrawals once again. This inconsistency suggests that the exchange is struggling to maintain its fiat off-ramps and on-ramps.
Overall, Binance.US has notified its customers of the temporary suspension of USD withdrawals and provided alternative options for withdrawals using stablecoins or other cryptocurrencies. It has also emphasized that crypto assets are not protected by FDIC insurance. The exchange’s ongoing issues with USD deposits indicate challenges in maintaining fiat operations..
#Binance.US #Halts #USD #Withdrawals #Tokenhell
