Binance To Temporarily Suspend Transfers In U.S Dollars.
Suspending USD Transfers
The world’s largest cryptocurrency exchange Binance has recently announced that it will temporarily suspend U.S. dollar deposits and withdrawals starting February 8th.
The crypto exchange assures the community by claiming that “0.01% of our monthly active users leverage USD bank transfers” and that they are “working hard to restart service as soon as possible.”
Although it was not specified how long this suspension would continue for, Binance reassures their users that all other methods of buying and selling crypto on the platform will remain unaffected, including deposits and withdrawals for euros.
“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,” Binance’s spokesperson said.
Binance also notifies that Binance US, a separately run U.S. division, will not be affected by this suspension.
From February 8th, we will temporarily suspend all USD bank transfers.
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.
— Binance (@binance) February 6, 2023
Reason For Suspension
Although Binance did not specify the reason for their sudden suspension in their statement, many in the community have suspected that the reason for the crypto exchange to suddenly halt USD transfers may be due to issues with its bank partner Signature Bank.
On Jan 21, Signature Bank announced that it will now begin to only process trades by users with USD bank accounts that have over $100,000.
Not long after that on Feb. 1, Binance released a list of 144 countries in which any and all USD SWIFT transfers of any size would be suspended.