Binance Halts Processing of US Dollar Bank Transfers Temporarily

Binance, the leading global cryptocurrency exchange, has announced a temporary suspension of US Dollar bank transfers for a limited number of users starting February 8th. The suspension, which only impacts international users of Binance, has been attributed to difficulties with US banking regulations and compliance requirements.

Binance Halts Processing of US Dollar Bank Transfers Temporarily

Binance, the biggest cryptocurrency exchange globally, will temporarily suspend accepting and processing US Dollar bank transfer deposits and withdrawals as of February 8th at 22:00 (UTC+0). According to a statement made by the exchange on February 6th, other trading methods will remain unaffected.

The exchange has stated that only a limited number of users will be affected by the temporary suspension, and efforts are being made to resume the service promptly. The suspension will only impact international users of Binance, as it has been confirmed that customers of Binance.US will not be affected.

It has been noted that only a tiny fraction, 0.01%, of the monthly active users of Binance utilize USD bank transfers. Despite this, the exchange acknowledges that this is a negative experience for any affected users, and the team is actively working towards resolving the issue as soon as possible.

Binance’s CEO, Changpeng Zhao, has stated that while some banks are withdrawing support for the cryptocurrency industry, other financial institutions are stepping in. He acknowledges that there have been some setbacks, particularly from incidents that occurred last year, but maintains a long-term perspective, emphasizing the importance of continued growth and development.

Binance Banking Challenges In The US

The exact reasons for suspending US dollar bank transfers on Binance are unclear. Still, it is speculated that the company needs help with US banking regulations and compliance requirements. In 2019, Binance ceased offering its services to customers in the United States.  The company entered into a partnership that resulted in the creation of Binance.US, an independently regulated entity in the United States.

According to information obtained by DB Newswire from a reliable source, Binance is seeking a new banking partner to support US dollar transfers. In January, Binance announced that one of its banking partners, Signature Bank, based in the US, would no longer handle SWIFT fiat transactions for individuals with a balance of less than $100,000, starting in February.

Reports indicate that following the announcement, there was a substantial increase in withdrawals from Binance’s crypto wallets, with millions of dollar-pegged stablecoins like tether and USDC being moved to other exchanges or individual wallets. However, it is noted that this outflow was minor in comparison to Binance’s total crypto assets of $42.2 billion.