Global cryptocurrency exchange Binance has decided to stop US dollar withdrawals and deposits through bank accounts. Wednesday As the crypto market gains more traction, banks are attempting to reduce their exposure to it. “We are working hard to restart the service as soon as possible,” Binance stated.
Suspended Binance USD withdrawals and deposits
On Wednesday, global cryptocurrency exchange Binance announced that US dollar withdrawals and deposits made to bank accounts will be suspended. Without providing a reason, Binance told CNBC that a spokesperson
We will be suspending USD bank transfers immediately as of February 8. Affected customers are being notified promptly… We are doing all we can to get the service back up and running as soon as possible.
“0.01% of our monthly active users take advantage of USD bank transfers,” The spokesperson noted that other methods of buying and selling cryptocurrency, such as using bank cards, Google Pay Apple Pay, “remain unaffected” on Binance.
The spokesperson also said: “We remain overwhelmingly positive on net deposits… Outflows always increase when prices start to stabilize after a market swing like we saw last week when some users took profits.” .
At the same time, Binance US, a unit of Binance which is regulated by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), clarified on Twitter that it is a distinct entity. Binance stated that the suspension will not affect its users. .
Banks reducing crypto market exposure
Following the downturn in the FTX crypto market, an increasing number of banks have decreased their public exposure to crypto markets.
Binance also mentioned last month that its banking partner Signature Bank will only process transactions over $100,000 from the start of the month. A previous announcement by the bank stated that it would limit deposits from cryptocurrency customers up to $10 billion.
The Federal Reserve, Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC) recently issued a joint statement warning banks about the risks of cryptocurrency. “Agencies have significant safety and soundness concerns with business models that concentrate on crypto-asset-related activities or have concentrated exposures to the crypto-asset sector,” Read the joint statement
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