Binance Halting US Dollar Deposits and Withdrawals via Bank Accounts

Binance Halting US Dollar Deposits and Withdrawals via Bank Accounts

Global crypto exchange Binance is suspending deposits and withdrawals in U.S. dollars via bank accounts starting Wednesday as more and more banking institutions try to reduce their exposure to the crypto market. “We are working hard to restart service as soon as possible,” Binance said. Binance Suspending USD Deposits and Withdrawals

Global cryptocurrency exchange Binance is reportedly suspending withdrawals and deposits in U.S. dollars using bank accounts starting Wednesday. Without providing a reason, a spokesperson for Binance told CNBC: We are temporarily suspending USD bank transfers as of February 8th. Affected customers are being notified directly … We are working hard to restart service as soon as possible.

“0.01% of our monthly active users leverage USD bank transfers,” the spokesperson continued, noting that bank transfers using other fiat currencies and other methods of buying and selling cryptocurrencies on Binance, such as using credit cards, Google Pay, and Apple Pay, “remain unaffected.”

Nonetheless, the spokesperson claimed: “We’re still overwhelmingly net-positive on net deposits … Outflows always tick up when prices start to level off following a bullish market swing like we saw last week as some users take profits.”

Meanwhile, Binance US, a unit of Binance that is regulated by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) clarified on Twitter that it is a separate entity from Binance and its customers are not affected by the suspension. Banks Reducing Exposure to Crypto Market

A growing number of banks have been reducing their exposure to the crypto market following the collapse of crypto exchange FTX.

Binance said last month that its banking partner Signature Bank will only process transactions exceeding $100,000 from the beginning of this month. The bank previously stated that it plans to reduce up to $10 billion in deposits from cryptocurrency clients.

The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) recently issued a joint statement warning banking organizations about crypto risks. “The agencies have significant safety and soundness concerns with business models that are concentrated in crypto-asset-related activities or have concentrated exposures to the crypto-asset sector,” the joint statement reads. Tags in this story Binance, Binance halts withdrawals temporarily, Binance US dollar, temporary withdrawals, USD deposits, USD withdrawals

What do you think about Binance halting withdrawals and deposits in U.S. dollars via bank accounts? Let us know in the comments section below. Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Binance to Support Georgia’s Crypto Industry Through Blockchain Education EXCHANGES | 2 days ago Binance Says Indian Crypto Exchange Wazirx Can No Longer Use Its Wallet Services EXCHANGES | 3 days ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleFormer Bitcoin Dev Gavin Andresen Revises 2016 Blog Post, Calls Trust in Craig Wright a ‘Mistake’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItNFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales

Non-fungible token (NFT) sales saw a small uptick over the last week as $658.4 million in NFT sales were recorded, up 3.35% in seven days. Out of 15 blockchains, Polygon-based NFT sales saw the largest increase in volume, jumping 106.68% ... read more.Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design