Amid increasing legal scrutiny faced by the cryptocurrency industry, Binance.US is suspending all U.S. dollar deposits. This move follows the latest lawsuits launched by the Securities and Exchange Commission against crypto giants Binance and Coinbase.
The Announced Suspension
News broke that Binance.US, the American branch of the world’s largest cryptocurrency exchange, would halt all USD deposits effective from June 9, 2023. The announcement clarified that U.S. banking partners will cease processing payments for Binance.US as of June 13, 2023. The platform is also set to delist all USD trading pairs in the week following the deposit suspension, although USDT trading pairs will remain supported.
For any residual USD balances on the platform, users have the option to convert their funds into a stablecoin for on-chain withdrawal. Binance.US reassured customers that other services like trading, staking, deposits, and withdrawals remain unaffected. However, they cautioned that increased transaction volumes and potential weekend banking closures could lead to withdrawal delays.
The Transition to a Crypto-Only Platform
Binance.US plans to transition towards a crypto-only platform while reassuring customers that their assets will maintain a 1:1 ratio until the exchange can secure more stable banking partners.
In a Twitter post, Binance.US explained the reasons behind their decision, highlighting the aggressive tactics the SEC has been using against the American digital asset industry. Their tweet read,
“The SEC has been using an extremely aggressive and intimidating approach in its pursuit against the American digital asset industry. Binance.US and our business partners have not been spared in the use of these tactics, which has created…”
The Bigger Picture
Earlier this week, Binance.US also delisted ten trading pairs, including eight Bitcoin pairs and two Binance USD pairs. This move coincided with the temporary suspension of its OTC Trading Portal services.
Moving forward, the exchange expressed its commitment to defending itself, its customers, and the industry against the SEC’s attacks, while remaining open to productive compromises that enable a thriving digital asset marketplace in America.
