The world's biggest cryptocurrency exchange, Binance, is hitting the brakes on USD deposits and withdrawals. No reason has been given for this sudden change, leaving the crypto community to speculate on what could be behind the decision. But don't worry, it only affects a tiny fraction of Binance's monthly users, who leverage USD bank transfers.
“We are temporarily suspending USD bank transfers as of February 8th,” a Binance spokesperson told CNBC. “Affected customers are being notified directly.” The company said “0.01% of our monthly active users leverage USD bank transfers” and added that “we are working hard to restart service as soon as possible.”
“Only a small proportion of our users will be impacted by this and we are working hard to restart the service as soon as possible.”
From February 8th, we will temporarily suspend all USD bank transfers.
— Binance (@binance) February 6, 2023
Only a small proportion of our users will be impacted by this and we are working hard to restart the service as soon as possible.
All other methods of buying and selling crypto remain unaffected.
The company did not explain the reason for the suspension, but hinted that the decision was related to some "administrative issues."
The news sent ripples through the crypto world, causing some to worry about the exchange's financial health, given past rumors and the drop in the price of bitcoin. Others believe it could be related to the recent issues with unsecured BUSD stablecoins and the downfall of USDC.
The administrative issue: pic.twitter.com/LMK506HWGf
— Joshua Hendrickson (@HendricksonJS) February 6, 2023
But fear not, Binance US fans, this suspension doesn't apply to you! Binance US has its own banking partners and is operating smoothly.
Binance representative told CNBC in an email that “Binance.US has its own banking partners and does not have any issues.”
So what's the story behind the suspension? Could it be related to Binance's recent problems with its banking partner, Signature Bank? In Hanuary Binance announced that the bank would no longer support crypto exchanges with transactions under 100,000 USD starting from February 1, 2023. This only affects a small percentage of Binance's average monthly users who were serviced by Signature Bank, but the exchange is working hard to find an alternative solution.
It seems like the crypto-friendly bank is slowly distancing itself from the digital asset markets in the wake of recent industry debacles. But don't fret, Binance is always working to ensure that you can trade with ease and confidence. Stay tuned for updates on the USD suspension, and keep an eye on your Binance accounts.