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Binance US Halts USD Deposits, Banks to Pause Withdrawals Amid SEC Lawsuit

Published 2023-06-09, 05:12 a/m
© Reuters.  Binance US Halts USD Deposits, Banks to Pause Withdrawals Amid SEC Lawsuit
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Coin Edition -

  • Binance US announced a suspension of fiat (USD) deposits today.
  • The exchange’s banking partners intend to pause USD withdrawals by June 13, 2023.
  • The American arm of Binance blames SEC’s meritless attacks for the complications in its USD channels.

Binance US has announced that it will suspend fiat (USD) deposits on its online trading platform today. Meanwhile, the crypto exchange’s banking partners have stated their intent to pause USD withdrawals as soon as June 13, 2023, in light of the firm’s legal issues with the U.S. Securities and Exchange Commission (SEC).

According to a tweet by Binance US, the crypto exchange and its business affiliates have been caught in the hostile enforcement approach taken by the country’s securities regulator. The American arm of the world’s largest crypto exchange informed its customers that the SEC’s lawsuit had led to problems with its banking partners.

Binance US described the SEC’s recent actions as “extremely aggressive and intimidating tactics” aimed at unleashing an ideological campaign against the country’s digital asset industry. The crypto exchange stated that the decision to halt USD deposits was taken to protect the customers as well as the platform.

Given that Binance US’ banking partners plan to suspend USD withdrawals, the exchange has encouraged its users to take appropriate action with their USD. The tweet added that Binance US would transition into a “crypto-only” exchange until more stable banking partners are secured.

The crypto exchange stated that 1:1 reserves were being maintained for all customer assets and that the funds on the platform were secure. As for USD withdrawals, Binance US told its customers that the process might take longer than usual due to the increased volumes and weekend bank closures.

Starting next week, Binance US will delist USD pairs from its trading platform, including BTC/USD, ETH/USD, etc. “Binance.US will continue to vigorously defend ourselves, our customers, and industry against the meritless attacks of the SEC,” the exchange added.

The post Binance US Halts USD Deposits, Banks to Pause Withdrawals Amid SEC Lawsuit appeared first on Coin Edition.

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