Global crypto exchange Binance will suspend US dollar deposits and withdrawals through 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 the service as soon as possible,” Binance said.
Binance suspends USD deposits and withdrawals
Global cryptocurrency exchange Binance will reportedly suspend US dollar withdrawals and deposits using bank accounts starting Wednesday. Without providing a reason, a Binance spokesperson told CNBC:
We are temporarily suspending USD bank transfers starting February 8. Affected customers are being notified directly… We are working hard to restart service as soon as possible.
“0.01% of our monthly active users take advantage of USD bank transfers,” the spokesperson continued, noting that bank transfers using other fiat currencies and other methods of buying and selling cryptocurrency on Binance, such as using credit cards, Google Pay and Apple Pay, “remain unaffected”.
However, the spokesperson said: “We remain overwhelmingly positive on net deposits… Outflows always increase when prices start to stabilize after a market swing like we saw last week when some users took 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 that its clients are not affected by the suspension. .
Banks reducing exposure to the crypto market
A growing number of banks have been reducing their exposure to the crypto market following the collapse of the FTX crypto exchange.
Binance said last month that its banking partner Signature Bank will only process transactions that exceed $100,000 from the beginning of this month. The bank previously stated that it plans to reduce up to $10 billion in cryptocurrency customer deposits.
The Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) recently issued a joint statement warning banking organizations about the risks of cryptocurrencies. “Agencies have significant security and robustness concerns with business models that concentrate on crypto-asset-related activities or have concentrated exposures to the crypto-asset sector,” the joint statement read.
What do you think about Binance stopping US dollar withdrawals and deposits through bank accounts? Let us know in the comments section.
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