Cryptocurrency exchange Binance.US has updated its terms of service, hinting that direct withdrawals in US dollars are no longer supported on the platform.
Binance.US updated its terms of service on October 16, modifying the section on “BAM Fiat Wallet”, in reference to Binance.US services related to the custody of the US dollar.
In the updated terms, Binance.US wrote that users “may convert” their US dollar holdings into stablecoins or other digital assets to withdraw funds from their accounts.
Some cryptocurrency enthusiasts took to X (formerly Twitter) to confirm the change to the terms of service on Binance.US. “Binance takes over the dollar. Don’t worry, you can buy printed Tethers out of thin air or shit,” wrote one crypto watcher on X.
Binance US takes over the USD.
Don’t worry, you can buy printed Tethers out of nowhere or shit. pic.twitter.com/BPh7SY3qTM
— Kassandra from Bitfinex (@Bitfinexed) October 17, 2023
Similar to previous terms of service updates, Binance.US emphasized that digital assets are not eligible for insurance protection from the Federal Deposit Insurance Corporation (FDIC).
“In the event that we terminate our relationship with a USD custodian and are unable to find another USD custodian, we will notify you and give you time to withdraw your US dollar deposits,” Binance.US wrote in an update on May 5, 2023. .firma added:
“Any US dollar deposits that are not withdrawn by the deadline provided in the notice will be converted into stablecoin digital assets and transferred to your digital asset account.”
The latest updates to the Binance.US terms of service differ markedly from a version published in May 2023. At the time, the page included now-deleted information that BAM, the operator of Binance.US, is not a member of the FDIC and is not a bank, but has “worked with U.S. dollar custodians” to ensure that custodians hold U.S. dollar deposits in general accounts at FDIC-insured banks.
Subject to compliance by BAM and the custodian of the US dollar, BAM intends for the funds to be eligible for the FDIC insurance coverage limit of $250,000 per eligible individual, “which would only apply if a bank fails,” the terms of use from May 2023. read, adding:
“In the event that the bank fails (…) your account(s) at the bank and the trust account (…) may be aggregated to determine your eligibility for FDIC deposit insurance . “FDIC insurance does not protect against the failure of BAM or the misconduct of any BAM employee.”
Binance.US did not immediately respond to Cointelegraph’s request for comment.
Related: Binance.US turns to MoonPay as a banking alternative to recover USD ramps
The news is another example of Binance.US struggling to maintain its fiat on- and off-ramps, as the exchange halted some US dollar trading over the past year.
In June 2023, Binance.US suspended US dollar deposits and notified its customers about an incoming pause on fiat withdrawal channels. The company later said it resolved the US dollar withdrawal issues, but warned it could be a temporary solution.
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