Binance US Implements Changes to Dollar Withdrawal Policy
Binance US, the U.S.-based cryptocurrency exchange affiliated with Binance, has made updates to its terms of use regarding dollar withdrawals. The trading platform, operated by BAM Trading Services Inc., clarified that users can access their USD funds through BAM-issued stored value wallets denominated in U.S. dollars (BAM Fiat Wallets). However, if you wish to withdraw U.S. dollar funds from your account, you must first convert them into stablecoins or other digital assets before being able to withdraw.
Background on Binance US’s Dollar Withdrawal Suspension
In response to a court order initiated by the U.S. Securities and Exchange Commission (SEC) to freeze its assets, Binance US suspended U.S. dollar deposits in early June. The exchange also warned that its banking partners were preparing to pause USD withdrawal channels. Although asset freezing was avoided, Binance US’s share of the total U.S. crypto trading volume has significantly dropped.
Restoration of Dollar Withdrawals and Advice for Users
Binance US announced on July 17 that U.S. dollar withdrawals have been restored. However, users are still advised to convert their USD fiat balances into stablecoins to continue crypto-to-crypto trading on the platform. Any remaining USD balance may be converted to USDT at a later date. It is important for users to note that Binance, CEO Changpeng Zhao (CZ), and BAM Trading Services were sued by the SEC on June 5, facing charges related to operating unregistered exchanges, broker-dealers, and clearing agencies.
Hot Take: Binance US Adjusts Withdrawal Policy Amid Legal Challenges
Binance US’s decision to suspend dollar withdrawals and implement changes requiring users to convert their funds into stablecoins or other digital assets reflects the legal challenges it faces from the SEC. By restoring dollar withdrawals but recommending conversions to stablecoins, Binance US aims to ensure continued trading on its platform while navigating regulatory hurdles. This move not only highlights the impact of regulatory actions on the crypto industry but also emphasizes the growing importance of stablecoins as a bridge between fiat and cryptocurrencies. Binance US’s ability to adapt and provide alternative withdrawal options showcases its commitment to serving its user base in a changing regulatory landscape.
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