In response to increased regulatory scrutiny, Binance. US has stopped allowing direct withdrawals of U.S. dollars due to changes in its terms of service, as part of a broader update to the company’s policies.
Binance.US announced these changes in an email to customers, explaining that users must convert US dollars to stablecoins or other digital assets before initiating withdrawals. The email also emphasized that US dollar deposits no longer come with FDIC insurance.
In the meantime, US regulators have filed multiple lawsuits against the platform over the past few months, prompting Binance.US to suspend certain withdrawal methods, including direct dollar withdrawals. This action followed the suspension of dollar deposits earlier this year.
Starting this week, Binance.US has officially suspended all USD withdrawals to comply with a modification of its terms of use. The company notified users of the change via email and explained the new process for withdrawing USD.
“If customers wish to withdraw US dollar funds from their account, they may do so by converting US dollar funds to stablecoin or other digital assets, which can subsequently be withdrawn,” the email stated.
It also added, “Any U.S. dollar deposits that are not withdrawn by the deadline provided in the notice will be converted to stablecoin digital assets and transferred to your digital assets account.”
Binance.US has faced ongoing challenges in upholding its fiat on-ramps and off-ramps, with reports of the exchange suspending certain U.S. dollar-related activities over the last year.
However, In June 2023, Binance.US suspended U.S. dollar deposits and later informed customers of possible disruptions in fiat withdrawal channels. The platform temporarily resolved these issues but emphasized that the resolution might not be permanent
The SEC took an aggressive stance against the company, leading to some of the platform’s banking partners becoming hesitant to engage after it filed a lawsuit against Binance.US in June.
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