Binance.US announced earlier today that it will pause USD deposits and withdrawals following the crackdown from the Securities and Exchange Commission. According to the statement, the decision was made due to the Commission’s “increasingly aggressive tactics” on the crypto industry.
In a bid to protect its customers, the crypto firm has announced a suspension of fiat withdrawal channels as early as June 13. Furthermore, the firm encouraged customers to take action with their USD as soon as possible. Recall that on June 5, the SEC charged Binance and its CEO Zhao with 13 violations.
The firm announced the development as a way to notify customers immediately as it transitions to a crypto-only exchange.
The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry. https://t.co/AZwoBOgsqS and our business partners have not been spared in the use of these tactics, which has created… pic.twitter.com/rlIe6swIoY
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— Binance.US 🇺🇸 (@BinanceUS) June 9, 2023
In spite of this update, other cryptocurrency transactions like trading, staking, deposits, and withdrawals will go on as usual stating that any downtime in withdrawal processing may be as a result of weekend bank closures or increased transaction volumes.
Binance.US and its banking partners have experienced increased hurdles as a result of the SEC’s “ideological campaign against the American digital asset industry,” according to the company. Those banking partners have indicated their intention to cut off fiat access to the exchange.
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Furthermore, Binance.US said in the statement that it will be delisting USD pairs like BTC/USD beginning next week. However, stablecoin pairs like BTC/USDT will still be made available on the platform.
In addition, any USD balance that is remaining on the platform after June 15 will be converted to stablecoin and can be withdrawn on the blockchain. Binance.US warns in the statement that ACH withdrawals might take longer to process going forward due to “elevated volumes and weekend bank closures.”
While the crypto exchange moves to secure more banking partners, the platform will remain a crypto-only exchange.
SEC files for TRO (temporary restraining order)
On June 6, Binance.US informed its users in a statement that the Securities and Exchange Commission has filed a motion in court to freeze its assets. The news triggered a spike in user withdrawals on the Binance.US platform according to data from DeFillama. However, Binance.US continues to assure customers that their funds are safe and that operations will carry on as usual.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.