Crypto exchange giant, Binance is suspending US dollar deposits and withdrawals using bank transfers on its global platform from Wednesday. However, the service limitations will not affect the customers of Binance US, its US-based arm.
Binance to Suspend USD Transactions via Banks
“It’s worth noting that only 0.01 percent of our monthly active users leverage USD bank transfers, but that we are working hard to restart service as soon as possible,” a Binance spokesperson said in a media statement.
In addition, the exchange notified “affected customers… directly” about the suspension that will commence on February 8. However, the exchange did not specify any reason behind the drastic move.
Nevertheless, Binance CEO Changpeng Zhao hinted that some banks are withdrawing support from the cryptocurrency industry due to “last year’s incidents,” referring to the collapse of FTX and Terra Luna.
On top of that, Binance clarified the upcoming suspension would not impact other modes of payment into the exchange, let it be transactions with other fiats like the euro. Further, it will continue to accept US dollars with other payment modes, including credit and debit cards, Google Pay, and Apple Pay.
“In the interim, all other methods of buying and selling crypto remain unaffected, including bank transfer using one of the other fiat currencies supported by Binance (including euros), buying and selling crypto via credit card, debit card, Google Pay, and Apple Pay and via our Binance P2P marketplace,” the spokesperson added.
Banks’ Hostility against Crypto Exchanges
Crypto exchanges always faced hostility from the banks. In countries like India, the crypto industry needed to find innovative ways for fiat support as regulators banned banks from offering services to crypto exchanges for years. Though such bans were lifted from most places, several banks cite the risky nature of cryptocurrencies and their internal policies to stay away from the crypto industry.
Last month, Binance announced that its banking partner Signature Bank would handle transactions only above $100,000. It came as the New York-based lender was limiting its exposure to digital assets, aiming to cut down $10 billion in deposits from crypto clients.
