Binance.US, the US arm of the world’s largest cryptocurrency exchange by volume, appears to have been unaffected by its sister firm’s decision to temporarily suspend US dollar transfer services.
In a tweet on Feb. 6, the US-based company indicated that barring an official announcement, its clients will not be affected by the suspension, which is expected to last several weeks until main Binance finds a new partner. banking.
Binance.US is not the same as Binance
Binance US further reiterated that it was separate from its global counterpart and authorized and regulated by the US Department of Treasury’s Financial Crimes Enforcement Network (FCEN).
The US company was formed in 2019 in response to a regulatory ban placed on the original Binance by US authorities. The company is a separate unit of the world’s largest cryptocurrency exchange and adheres to all applicable US federal laws. However, it remains unlicensed in six states: New York, Texas, Idaho, Louisiana, Vermont, and Hawaii.
Some Binance critics have alleged that if Binance US still offered USD trading services, it was well within the scope of possibility for parent Binance to use it to find a solution to its current banking problem.
USD transaction services to resume after Binance finds new banking partner
Binance’s main exchange, which caters to international clients, said in late January that its US banking partner, Signature Bank, had raised the threshold for cryptocurrency-related dollar transactions to $100,000. Binance claimed at the time that Signature I had informed him that the increased requirement extended to all users of crypto exchanges.
Weeks later, on February 6, the exchange announced that it would temporarily suspend dollar withdrawals and deposits through bank accounts starting February 8, but would resume service as soon as possible.
The company did not give any reason for its decision, but speculation abounds that it could be related to its US banking partner’s move to raise dollar transaction minimums. However, despite the suspension of USD services, Binance has assured clients that they will still be able to make bank transfers using other fiat currencies, including the Euro.
Media reports quoted a Binance.US representative as saying that the US-based crypto exchange has separate banking partners from its sister company and does not have the same issues plaguing its Vilnius-based counterpart.
