Binance announces a temporary suspension of bank transfers in USD

Binance – the world’s largest cryptocurrency exchange – announced on Monday that it will temporarily stop all USD deposits and withdrawals from bank accounts starting February 8.

The company said it will work to turn the feature back on as soon as possible.

Why comment?

after declare The comment via Twitter did not provide a specific explanation to Binance as to why it happened. However, I made it clear that the break would only affect a small part of the user base.

All other ways to buy and sell cryptocurrencies from the exchange will remain effective – including credit cards, Apple Pay, Google Pay, and bank transfers using other fiat currencies, such as the Euro.

β€œIt is worth noting that only 0.01% of our monthly active users use USD bank transfers, but we are working hard to get the service back up and running as soon as possible,” a Binance spokesperson said. bloomberg in a letter.

The plans also do not affect customers of Binance.US – the only one between the two companies authorized to serve users within the US. “We will not stop US dollar withdrawals and deposits on the 8th of February,” the company wrote on Twitter on Monday.

The collapse of FTX, Binance’s largest international competitor, has made banks reluctant to form partnerships with crypto firms, after federal regulators issued warnings against such partnerships.

While some banks [are] Cryptocurrency support withdraws, other banks move in,” Binance CEO Changpeng Zhao tweeted regarding the announcement. Some backlash was to be expected from the events of last year.”

CZ added that the discontinuation of bank transfers in US dollars remains a “poor user experience”, despite having little impact on customers.

signature bank

In January, Binance announced that one of its banking partners, Signature Bank, would do so discontinue treatment fiat to cryptocurrency transactions of less than $100,000. The lender intends to reduce its exposure to the cryptocurrency markets and cut up to $10 billion in deposits from crypto customers.

This step was in response to A.S statement From the FDIC, banking in the crypto sector should be considered a high-risk activity.

Binance’s announcement of temporarily suspending US dollar bank transfers appeared first on CryptoPotato.

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