Binance Halting US Dollar Deposits and Withdrawals with Bank Accounts
Global cryptocurrency exchange Binance is definitively suspending and blocking US dollar withdrawals and deposits using bank accounts starting Wednesday. A spokesperson for it told CNBC without giving any reason and without giving any concrete reasons.
We are permanently suspending USD bank transfers from 8th February and of course we would like to let all customers who are affected by this and who have issues with our decision know that we will process this as soon as possible And for this we are working hard so that it can be started again. The spokesperson states that 0.01% of our monthly active users take advantage of USD bank transfers and noting that banks use other methods to buy or sell cryptocurrencies on Binance such as credit cards And Google Pay and Apple Pay and many, many applications like that are definitely unaffected. We can say that the claim is coming in that we are still mostly positive on net deposits…. The outflows always stick and after the volatility in the market the price level definitely falls and as we see last week there are some users who take advantage of it.
Meanwhile, an entity of the crypto exchange regulated by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) clarified on Twitter that it is a separate entity from Binance and that its customers are not affected by such suspension. Certainly after the collapse of crypto exchanges, an increasing number of banks are attempting to hedge their exposure to the crypto market and are engaged in the process.
Binance was saying last month that its banking partner Signature Bank would only process transactions above $100,000 earlier this month, and the bank had previously said it planned to reduce up to $10 billion in deposits from cryptocurrency customers. is being made. The Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency recently released a statement warning banking organizations about the risks of cryptocurrencies. The joint statement went on to say that “the agencies certainly have security and concerns with the business community as well as the risks and benefits associated with cryptocurrencies. “There is a lot of activity focused and we can say with certainty that it is either the asset or the concentrated exposure to the sector.
