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Under escalating pressures from the Securities and Exchange Commission (SEC), Binance's US subsidiary has made a radical decision affecting its clients.
Binance.US announced late on Thursday that it would suspend dollar deposits on its platform. Similarly, it informed its customers that banking partners are preparing to temporarily halt the fiat (USD) withdrawal channels as early as next Tuesday.
“Irrespective of the baseless claims, and in light of the Commission’s increasingly aggressive tactics, our payment and banking partners have signaled their intent to pause USD fiat channels as early as June 13, 2023, leaning our ability to accept USD fiat deposits and process USD fiat withdrawals will be impacted,” the exchange wrote. “As part of our customer-first-commitment, we are notifying users promptly so you can take necessary actions as we transition to a crypto-only exchange.”
Customers are encouraged to withdraw their USD via bank transfer (ACH) by June 13, 2023. To facilitate this process, Binance is suspending USD deposits and recurring buy orders.
Starting next week, Binance will begin delisting USD trading pairs, while continuing to support stablecoin pairs.
Any remaining USD balances on the platform after June 15, 2023, may be converted into a stablecoin that can be withdrawn on-chain.
Nevertheless, the company has confirmed that crypto trading, staking, and withdrawal operations will continue.
It is difficult to know at this time whether these changes will be permanent. “Until we secure more stable banking partners, Binance.US will remain a crypto-only exchange—at least for a time,” the firm wrote.
On June 5, the SEC accused the company of allegedly violating U.S. securities laws, whereas Binance CEO, Changpeng Zhao, is also targeted in the lawsuits initiated by the agency.
On Wednesday, Binance.US had already announced the removal of over 40 cryptocurrency trading pairs currently available on its platform.
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