Binance Reports the Temporary Suspension of Bank Transfers in US Dollars

It is anticipated that the suspension would affect just a minute proportion of Binance’s user base.

Binance, the biggest cryptocurrency exchange in the world, stated on Monday that it would suspend all USD deposits and withdrawals from bank accounts beginning February 8.

The business said that efforts would be made to resume the function as soon as feasible. After announcing the ban through Twitter, Binance provided no explanation as to why it was occurring. However, it underlined that just a tiny fraction of its user base will be affected.

All other ways of purchasing and selling cryptocurrency on the exchange, including credit cards, Apple Pay, Google Pay, and bank transfers with other fiat currencies, such as euros, will continue to function.

US customers — the only company between the two having the authorisation to serve consumers in the US. “We will NOT pause $USD withdrawals and deposits on February 8,” the business tweeted on Monday.”

After federal officials issued cautions against such alliances, the failure of FTX, previously Binance’s biggest foreign competitor, has made banks reluctant to forge agreements with crypto businesses.

“While some banks are pulling support for cryptocurrencies, others are going in,” tweeted Changpeng Zhao, CEO of Binance, in response to the development. The occurrences of the previous year were anticipated to cause some repercussions.

CZ said that despite its modest effect on clients, the hold on USD bank transfers is nevertheless a “poor user experience.”

In January, Binance stated that one of its financial partners, Signature Bank, would no longer execute fiat-to-cryptocurrency transactions under $100,000. The bank plans to reduce its exposure to cryptocurrency markets by preventing up to $10 billion in deposits from cryptocurrency customers.

The action was taken in response to a declaration by the Federal Deposit Insurance Corporation that crypto-sector banking should be regarded as a high-risk endeavour.

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