Cryptocurrency Exchange Binance.US Updates Terms of Service, No Longer Supports Direct USD Withdrawals
Cryptocurrency exchange Binance.US has made changes to its terms of service, suggesting that direct withdrawals in USD are no longer available on the platform. The updates to the terms were made on October 16 and specifically modified the section regarding the “BAM Fiat Wallet,” which refers to Binance US services related to USD custody. According to the updated terms, users can convert their USD funds into stablecoins or other digital assets in order to withdraw USD from their accounts.
Concerns Raised by Crypto Community on Social Media
Following the changes, several cryptocurrency enthusiasts took to social media platform X (formerly Twitter) to confirm and express their concerns about Binance.US’s new terms of service. One user wrote, “Binance seizes USD. Don’t worry, you can buy Tethers printed out of thin air or shitcoins.” This tweet highlights worries about the lack of direct USD withdrawals and the potential risks associated with converting funds into stablecoins.
Digital Assets Not Eligible for FDIC Insurance Protections
Binance.US reiterated in its updated terms of service that digital assets are not covered by insurance protections provided by the Federal Deposit Insurance Corporation (FDIC). In a previous update on May 5, 2023, Binance.US stated that if they terminate their relationship with a USD custodian and are unable to find another one, they will provide notice and time for users to withdraw their USD deposits. Any deposits not withdrawn by the deadline will be converted into stablecoin digital assets and transferred to users’ digital asset accounts.
Differences from Previous Terms of Service Version
The latest updates to Binance.US’s terms of service differ significantly from a version posted in May 2023. The previous version included information that the Binance.US operator, BAM, had worked with USD custodians to ensure that USD deposits were held by FDIC-insured banks. It also mentioned that the funds could be eligible for FDIC insurance coverage. However, this information has now been removed from the updated terms of service.
Binance.US’s Struggles with Fiat On and Off Ramps
This recent change is another example of Binance.US facing difficulties with its fiat on and off ramps. The exchange has previously suspended USD deposits and warned customers about potential issues with fiat withdrawal channels. While Binance.US resolved those specific issues at the time, it seems that the situation remains uncertain.
Hot Take: Binance.US Alters Terms of Service, Raises Concerns About USD Withdrawals
Binance.US has updated its terms of service, removing support for direct withdrawals in USD. Users are now required to convert their USD funds into stablecoins or other digital assets in order to withdraw their funds. This change has raised concerns among the crypto community about the risks associated with converting funds and the lack of direct USD withdrawals. Additionally, Binance.US has emphasized that digital assets are not covered by FDIC insurance protections. This development highlights the ongoing struggles faced by Binance.US in maintaining its fiat on and off ramps. The exchange has previously suspended USD operations, and while some issues were resolved, concerns about its fiat withdrawal channels remain.
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