Binance to Suspend USD Bank Transfers from Wednesday
- The suspension will not impact the users of Binance US.
- The exchange did not specify any reason behind the move.
Crypto exchange giant, Binance is suspending US dollar deposits and withdrawals using bank transfers on its global platform from Wednesday. However, the service limitations will not affect the customers of Binance US, its US-based arm.
https://t.co/gM6e3xb9BX customers can continue to safely and securely withdraw and deposit USD on our platform.
— Binance.US Customer Support (@BinanceUShelp) February 6, 2023
Learn how to deposit USD: https://t.co/rL0rjVdjT8 pic.twitter.com/WyMPzZGuae
Binance to Suspend USD Transactions via Banks
“It’s worth noting that only 0.01 percent of our monthly active users leverage USD bank transfers, but that we are working hard to restart service as soon as possible,” a Binance spokesperson said in a media statement.
In addition, the exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term notified “affected customers… directly” about the suspension that will commence on February 8. However, the exchange did not specify any reason behind the drastic move.
Nevertheless, Binance CEO Changpeng Zhao hinted that some banks are withdrawing support from the cryptocurrency industry due to “last year’s incidents,” referring to the collapse of FTX and Terra Luna.
While some banks withdrawing support for crypto, other banks are moving in. Some setbacks were expected from last year's incidents. Long term, keep building.
— CZ 🔶 Binance (@cz_binance) February 6, 2023
On top of that, Binance clarified the upcoming suspension would not impact other modes of payment into the exchange, let it be transactions with other fiats like the euro. Further, it will continue to accept US dollars with other payment modes, including credit and debit cards, Google Pay, and Apple Pay.
“In the interim, all other methods of buying and selling crypto remain unaffected, including bank transfer using one of the other fiat currencies supported by Binance (including euros), buying and selling crypto via credit card, debit card, Google Pay, and Apple Pay and via our Binance P2P marketplace,” the spokesperson added.
Banks’ Hostility against Crypto Exchanges
Crypto exchanges always faced hostility from the banks. In countries like India, the crypto industry needed to find innovative ways for fiat support as regulators banned banks from offering services to crypto exchanges for years. Though such bans were lifted from most places, several banks cite the risky nature of cryptocurrencies and their internal policies to stay away from the crypto industry.
Last month, Binance announced that its banking partner Signature Bank would handle transactions only above $100,000. It came as the New York-based lender was limiting its exposure to digital assets, aiming to cut down $10 billion in deposits from crypto clients.
Crypto exchange giant, Binance is suspending US dollar deposits and withdrawals using bank transfers on its global platform from Wednesday. However, the service limitations will not affect the customers of Binance US, its US-based arm.
https://t.co/gM6e3xb9BX customers can continue to safely and securely withdraw and deposit USD on our platform.
— Binance.US Customer Support (@BinanceUShelp) February 6, 2023
Learn how to deposit USD: https://t.co/rL0rjVdjT8 pic.twitter.com/WyMPzZGuae
Binance to Suspend USD Transactions via Banks
“It’s worth noting that only 0.01 percent of our monthly active users leverage USD bank transfers, but that we are working hard to restart service as soon as possible,” a Binance spokesperson said in a media statement.
In addition, the exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term notified “affected customers… directly” about the suspension that will commence on February 8. However, the exchange did not specify any reason behind the drastic move.
Nevertheless, Binance CEO Changpeng Zhao hinted that some banks are withdrawing support from the cryptocurrency industry due to “last year’s incidents,” referring to the collapse of FTX and Terra Luna.
While some banks withdrawing support for crypto, other banks are moving in. Some setbacks were expected from last year's incidents. Long term, keep building.
— CZ 🔶 Binance (@cz_binance) February 6, 2023
On top of that, Binance clarified the upcoming suspension would not impact other modes of payment into the exchange, let it be transactions with other fiats like the euro. Further, it will continue to accept US dollars with other payment modes, including credit and debit cards, Google Pay, and Apple Pay.
“In the interim, all other methods of buying and selling crypto remain unaffected, including bank transfer using one of the other fiat currencies supported by Binance (including euros), buying and selling crypto via credit card, debit card, Google Pay, and Apple Pay and via our Binance P2P marketplace,” the spokesperson added.
Banks’ Hostility against Crypto Exchanges
Crypto exchanges always faced hostility from the banks. In countries like India, the crypto industry needed to find innovative ways for fiat support as regulators banned banks from offering services to crypto exchanges for years. Though such bans were lifted from most places, several banks cite the risky nature of cryptocurrencies and their internal policies to stay away from the crypto industry.
Last month, Binance announced that its banking partner Signature Bank would handle transactions only above $100,000. It came as the New York-based lender was limiting its exposure to digital assets, aiming to cut down $10 billion in deposits from crypto clients.