- Binance will suspend U.S. dollar withdrawals and deposits for international customers beginning Feb. 8, as per the company.
- Binance Bank partner Signature Bank In January For dollar transfers, transaction minimums were increased
- Millions Cryptocurrency worth millions of dollars was withdrawn from Binance After it made the announcement, the company said it is still in business “net-positive.”
Changpeng ZhaoBillionaire and Chief Executive Officer of Binance Holdings LtdDuring a session at The,. Web Summit In Lisbon, PortugalOn Wednesday, Nov. 2, 2022.
Zed Jameson | Bloomberg | Getty Images
BinanceThe world’s biggest crypto exchange,, declared it would temporarily suspend U.S. dollar withdrawals and deposits. MondayWithout providing any reason.
“We are halting USD bank transfers as of February 8th,” You can find more information at Binance CNBC spokesperson “Affected customers are being informed directly.” The Company said “0.01% of our monthly active users leverage USD bank transfers” And more “we are working hard to restart service as quickly as possible.”
Binance US is a branch of the company, which is supervised by Treasury Department’s Financial Crimes Enforcement Network”, stated in a tweet It will not be influenced by the suspension. Thus This move does not concern customers outside the United States who transfer dollars to or from banks accounts.
Data Starting at Arkham Intelligence It was evident that there was an instantaneous spike in outflows after the announcement. Binance’s As millions of stablecoins pegged at USDC, such as tether, were pulled from the exchange. Binance Despite the withdrawals, the company said it is still “net-positive” on deposits.
The move follows Binance partnering with Signature Bank in January to enable customers to transfer dollars to and from the exchange. The minimum transaction size was increased to $250,000 from $10,000.
Data from DefiLlama.net has revealed that Binance’s outflow of U.S. dollars was more than $172 million. This amount is relatively small compared to the $42.2 billion worth of crypto assets invested in the exchange. According to a spokesperson, Binance is still “overwhelmingly net-positive on net deposits.” Following the recent bullish market swing, it appears some users have taken profits which have led to a rise in outflows.
Despite the news, Binance’s own exchange token, BNB, has held steady at $328. This is its best month since October 2021, with an increase of 38% since the start of the year.
It appears the dollar transfer suspension is due to Binance’s banking partner, Signature Bank, increasing the minimum transaction amount to $100,000. This new minimum applies to all customers of the crypto exchange, though Binance US customers are served by a different partner and are not affected.
To provide users with an alternative, Binance has said that a new partner will be announced in the next couple of weeks. Until then, customers can still use fiat currencies and other payment methods to purchase crypto.
