Processing Of US Dollar Bank Transfers Is Temporarily Halted By Binance
The most popular cryptocurrency exchange in the world, Binance, has announced a temporary suspension of US Dollar bank transfers for a select group of users beginning February 8. An issue with US banking regulations and compliance standards has been said to be attributed to the suspension, which exclusively affects international Binance users.
Processing Of US Dollar Bank Transfers Is Temporarily Halted By Binance
As of February 8 at 22:00 (UTC+0), Binance, the largest cryptocurrency exchange globally, will suspend accepting and processing US Dollar bank transfer deposits and withdrawals. Other trading activities won’t be impacted, the exchange said in a statement on February 6th.
Only a small number of users will be impacted by the temporary suspension, according to the exchange, and efforts are being taken to reinstate service quickly. Customers of Binance.US will not be impacted, as has been confirmed; the suspension will solely affect overseas users of Binance.
Only 0.01% of Binance’s monthly active users, or a small percentage, use USD bank transfers. Despite this, the team actively strives to find a solution as quickly as possible.
According to Changpeng Zhao, CEO of Binance, although some banks are ceasing to support the cryptocurrency sector, other financial institutions are filling the gap. He accepts that there have been some setbacks, especially due to events that occurred the previous year, but he has a long-term perspective and stresses the significance of ongoing growth and development.
Banking Issues With Binance In The US
Unknown causes may have led to the suspension of US dollar bank transactions on Binance. However, it is assumed that the corporation has issues adhering to compliance standards and US banking rules. Binance stopped providing its services to users in the United States in 2019. The business formed a collaboration that led to the establishment of Binance.US, an independently regulated organization in the US.
DB Newswire has learned from a source that Binance is looking for a new banking partner to enable US dollar transfers. Binance said in January that effective in February, one of its banking partners, the US-based Signature Bank, would no longer process SWIFT fiat transactions for customers with balances under $100,000.
According to reports, there was a sharp rise in withdrawals from Binance’s cryptocurrency wallets after the announcement, with millions of dollar-pegged stablecoins like tether and USDC being transferred to other exchanges or private wallets. It should be noted that this outflow was minimal compared to Binance’s $42.2 billion in total crypto assets.
