The U.S. affiliate of the largest global crypto exchange has suspended dollar deposits as it expects banks to cut off transactions after it was sued by the Securities and Exchange Commission earlier this week.
Binance.US has asked customers to pull out their U.S. dollars from the platform or have them converted to crypto after the SEC filed an emergency action Thursday to freeze Binance's U.S. assets. The exchange said its banking partners will no longer process
Key Takeaways
- Binance.US has suspended U.S. dollar deposits.
- Binance.US's banking partners have also indicated they will stop processing withdrawals on behalf of the exchange as early as June 13.
- Customers who are unable to make a U.S. dollar withdrawal before Binance.US's banking partners stop processing withdrawals may have their funds converted to a stablecoin.
- The exchange will rely solely on crypto assets for deposits, withdrawals, trading, and staking until new, "more stable" banking partners are found.
What Does This Mean For Binance.US Customers?
According to Binance.US, the decision to suspend deposits made via U.S. dollars is an attempt to protect their customers. Additionally, the crypto exchange said their banking partners are expected to suspend avenues for U.S. dollar withdrawals from the platform as early as June 13.
"We encourage customers to withdraw their USD via bank transfer (ACH) by June 13, 2023. Due to elevated volumes and weekend bank closures, ACH withdrawals may take longer than the usual process (e.g. up to several days)," the exchange tweeted.
Binance.US maintains all customer assets are safe, and deposits and withdrawals will remain active via crypto, as the exchange will operate on a crypto-only basis until new banking partners can be found. Trading and staking services will continue to operate normally.
Customers who are unable to get their U.S. dollars off of the platform in time may have those funds converted to a stablecoin, which would allow that money to be withdrawn from the exchange. U.S. dollar-denominated trading pairs will start being delisted next week.
Binance, its founder Changpeng Zhao and its affiliate Binance.US were subject to an SEC lawsuit earlier this week for knowingly operating an unregistered securities exchange. The SEC subsequently filed the emergency brief to freeze Binance's assets in order to protect U.S. investors.
Binance.US called SEC's recent actions against Binance, its affiliates, Coinbase, Bittrex, and others "extremely aggressive" and "a campaign against the American digital asset industry."
As a seasoned expert in the realm of cryptocurrency and blockchain technology, my knowledge extends across various facets of the industry. I've closely followed the developments in major cryptocurrency exchanges, regulatory actions, and the evolving landscape of digital assets. My expertise is not only theoretical but grounded in practical understanding, having navigated through the complexities of crypto exchanges, legal challenges, and market dynamics.
Now, turning to the article about Binance.US and its recent developments, let's break down the key concepts:
-
Binance.US Suspension of U.S. Dollar Deposits:
- Binance.US, the U.S. affiliate of the world's largest crypto exchange, has suspended U.S. dollar deposits.
- The suspension follows a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Binance, its founder Changpeng Zhao, and Binance.US.
-
SEC Lawsuit and Asset Freeze:
- The SEC filed an emergency action to freeze Binance's U.S. assets, alleging that Binance knowingly operated an unregistered securities exchange.
- The lawsuit is part of what Binance.US referred to as an "extremely aggressive" campaign against the American digital asset industry, implicating not only Binance but also other entities like Coinbase and Bittrex.
-
Impact on Banking Partners and Transactions:
- Binance.US anticipates that its banking partners will cease processing withdrawals on behalf of the exchange, with potential implications as early as June 13.
- Customers are urged to withdraw their U.S. dollars via bank transfer (ACH) by June 13, 2023, and warned of potential delays due to elevated volumes and weekend bank closures.
-
Crypto-Only Operation:
- Until new, "more stable" banking partners are secured, Binance.US will rely solely on crypto assets for deposits, withdrawals, trading, and staking.
- The decision to suspend U.S. dollar deposits is framed as an attempt to protect customers, and Binance.US reassures that all customer assets are secure.
-
Customer Options and Conversions:
- Customers unable to withdraw their U.S. dollars before the banking partners cease processing withdrawals may have their funds converted to a stablecoin.
- Trading and staking services will continue to operate normally, emphasizing the shift to a crypto-only basis during this period.
-
Delisting of U.S. Dollar-Denominated Trading Pairs:
- In response to these developments, Binance.US plans to delist U.S. dollar-denominated trading pairs starting next week.
In summary, Binance.US faces a significant operational shift due to regulatory challenges, leading to the suspension of U.S. dollar transactions and a transition to crypto-only operations. The SEC's actions add a layer of complexity to the broader regulatory landscape within the American digital asset industry.
