Binance, the world’s largest crypto exchange, is suspending deposits and withdrawals in US dollars, the company said on Monday, without giving a reason for the decision.
“From February 8, we will temporarily suspend bank transfers in USD. Affected customers will be notified directly.” – said the spokesperson of Binance. According to the company, only 0.01% of active users use USD transfers, and a company spokesperson added that they are working hard to get the service back up and running as soon as possible.
Binance US, the company’s American subsidiary, said in a tweet that it is not affected by the suspension, so the restriction only applies to non-US customers who would make transactions in dollars.
The number of withdrawals increased, users withdrew 172 million dollars in one day
Data from Arkham Intelligence shows that withdrawals from Binance crypto wallets jumped sharply after the announcement, with dollar-pegged stablecoins flowing to rival exchanges or non-custodial wallets.
By the way, the number of withdrawals increased so much that users withdrew 172 million dollars in one day. However, according to Arkham, for a company that has $42.2 billion worth of crypto, that’s not a big amount at all.
“We are still predominantly in surplus in terms of net deposits.” said the company’s spokesperson. “Disbursements always go up when we see a price increase like the one we saw last week…”
The announcement includes Binance’s own token, the BNB-t did not affect it, its exchange rate remained stable around 328 dollars.
Binance is preparing to announce a new banking partner in the coming weeks
As we reported, at the end of January, Binance announced that SWIFT’s partner, Signature Bank, had raised the US dollar transaction minimum to $100,000. At the time, Binance said Signature informed the exchange that the restriction applied to all users.
However, regarding Monday’s suspension, a Binance spokesperson said that Binance US has its own banking partners and is not affected by any restrictions.
Customers can still use other fiat currencies or payment methods to buy cryptocurrency, Binance said, but the exchange added that it will announce a new partner for affected users in the coming weeks.
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