Binance.US halts USD deposits and issues an impending withdrawal freeze

By: Henry Felix

Binance.US halts USD deposits and issues an impending withdrawal freeze

June 9, 2023 6:23 AM

Binance.US claimed that the actions are a response to the SEC's "extremely aggressive and intimidating tactics" in order to protect customers and the platform.


Binance.US has informed its customers of an impending halt to fiat (USD) withdrawal channels as early as June 13 and has announced the suspension of US dollar deposits.


On June 9, Binance.US declared that the Securities and Exchange Commission's "extremely aggressive and intimidating tactics" had compelled them to act.


The company stated that it has suspended USD deposits in an effort to safeguard its clients and platform. Furthermore, Binance.US is "informing clients that our banking partners are planning to halt fiat (USD) withdrawal channels as soon as June 13, 2023."

 


The firm also said it intended to switch to a crypto-only exchange while keeping a 1:1 ratio for client funds.


However, the notification did provide a warning that any delays in processing withdrawals "may be the result of elevated volumes and weekend bank closures."


It confirmed that cryptocurrency trading, staking, deposits, and withdrawals are still fully functional.


Binance.US and its banking partners have encountered more difficulties as a result of the SEC's "ideological campaign against the American digital asset industry," the company claimed. These banking partners have shown a desire to cut off fiat access to the exchange.


The company announced that USD deposits would be stopped as of June 9 and that USD trading pairs would be delisted the following week, although it would still accept USDT (Tether) trading pairs. Any USD that was still on the exchange could be turned into a stablecoin that could be withdrawn on-chain, according to the statement.

 


Binance.US delisted ten trading pairs. Source: Binance.US

 

On June 8, Binance.US delisted 10 trading pairs, including two BUSD pairs and eight BTC pairs, and noted that OTC Trading Gateway services had been suspended. Early in May, BTC traded at a premium on the American exchange. 

 

On June 6, the SEC filed an immediate directive to freeze Binance.US's assets. The company informed consumers that their assets were secure the next day and noted that deposits and withdrawals continued to work normally on the platform, which was still fully operating.