Kevin Helms
A student of Austrian economics, Kevin discovered Bitcoin in 2011 and has been an evangelist since then. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.
Global cryptocurrency exchange Binance has suspended U.S. dollar deposits and withdrawals through bank accounts starting Wednesday, as more banking institutions try to reduce their exposure to the cryptocurrency market. “We are working hard to restart the service as soon as possible,” Binance said.
Binance Suspends USD Deposits and Withdrawals
Global cryptocurrency exchange Binance has reportedly suspended U.S. dollar withdrawals and deposits using bank accounts starting Wednesday. A spokesperson for Binance told CNBC without providing a reason:
Effective February 8th, we will suspend USD bank transfers. Affected customers will be notified directly… We are working hard to restart service as soon as possible.
“0.01% of our monthly active users use USD bank transfers,” the spokesperson continued, pointing to bank transfers in other fiat currencies and other methods of buying and selling cryptocurrencies on Binance, such as using credit cards, Google Pay, and Apple Pay , “Remain unaffected.”
Nonetheless, the spokesperson claimed: “We remain resolutely positive on net deposits… When prices start to level off, outflows always increase, as we saw last week as some users gained Take advantage.”
Meanwhile, Binance US, a subsidiary of Binance regulated by the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), clarified on Twitter that it is a separate entity from Binance and its customers are not affected by the suspension.
Banks reduce exposure to cryptocurrency market
A growing number of banks have been reducing their exposure to the cryptocurrency market following the collapse of cryptocurrency exchange FTX.
Binance said last month that its banking partner Signature Bank will only process transactions over $100,000 starting earlier this month. The bank previously said it planned to take deposits from cryptocurrency customers by as much as $10 billion.
The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) recently issued a joint statement warning banking institutions of the risks of cryptocurrencies. “These agencies have significant safety and soundness concerns about business models that focus on activities related to, or exposure to, cryptoassets,” the joint statement read.
What do you think about Binance stopping USD withdrawals and deposits via bank accounts? Let us know in the comments section below.
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