Jamal Al-Farouq The American subsidiary of cryptocurrency exchange Binance, known as Binance US, has ceased allowing withdrawals in U.S. dollars. To access their funds, users are required to first convert their USD holdings into stablecoins or other digital assets, which can then be transferred out of the platform.
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Changes to Binance US Dollar Withdrawal Policy
Administered by BAM Trading Services Inc., an affiliate company of the global Binance brand, Binance US modified its terms of service earlier this week. Users who wish to extract their U.S. dollar holdings may do so via stored value wallets in U.S. dollars, issued by BAM (referred to as BAM Fiat Wallets). The platform issued a clarification:
Should you desire to withdraw funds in U.S. dollars, these can be converted into a stablecoin or another form of digital asset, which can then be taken out of your account.
In early June, the platform had suspended incoming deposits of U.S. dollars. This move was in response to a legal action by the U.S. Securities and Exchange Commission (SEC), which sought to freeze the exchange’s assets. While Binance US managed to evade an asset freeze, the incident significantly impacted its share of overall cryptocurrency trading volume in the United States.
On July 17, the exchange announced the resumption of U.S. dollar withdrawals. Nevertheless, it continued to recommend that users either spend, withdraw, or convert their existing U.S. dollar balances to stablecoins for ongoing crypto-to-crypto transactions on the platform. The company also noted that any residual U.S. dollar balances may be automatically converted into USDT at some future date.
Regulatory Actions Against Binance
The SEC initiated legal proceedings against Binance, its CEO Changpeng Zhao, and BAM Trading Services on June 5. The financial watchdog filed 13 counts against the entities, accusing them of operating unregistered exchanges, broker-dealers, and clearing agencies.
We invite your thoughts on Binance US discontinuing U.S. dollar withdrawal services. Please share your opinions in the comments section below.
Frequently Asked Questions (FAQs) about Binance US Dollar Withdrawals
What has Binance US changed regarding U.S. dollar withdrawals?
Binance US has suspended withdrawals in U.S. dollars. Users who wish to withdraw their U.S. dollar holdings must first convert them into stablecoins or other digital assets, which can then be transferred out of the platform.
Who is responsible for running Binance US?
Binance US is administered by BAM Trading Services Inc., an affiliate of the global Binance brand.
How can users access their U.S. dollar funds on Binance US?
Users can access their U.S. dollar funds through stored value wallets in U.S. dollars, issued by BAM (referred to as BAM Fiat Wallets). These funds can then be converted into stablecoins or other digital assets for withdrawal.
What led to the suspension of U.S. dollar deposits and withdrawals on Binance US?
In early June, Binance US suspended U.S. dollar deposits in response to a court order from the U.S. Securities and Exchange Commission (SEC), which sought to freeze the platform’s assets. While the exchange has since resumed U.S. dollar withdrawals, it continues to advise users to convert their USD balances to stablecoins for trading.
Did the SEC take any legal actions against Binance US?
Yes, the SEC initiated legal proceedings against Binance, its CEO Changpeng Zhao, and BAM Trading Services on June 5. The agency filed 13 counts against them, including operating unregistered exchanges, broker-dealers, and clearing agencies.
What was the impact on Binance US’s trading volume?
While Binance US managed to evade an asset freeze by the SEC, the platform’s share of the total U.S. crypto trading volume has seen a significant decrease.
What should users do with their existing U.S. dollar balances on Binance US?
Binance US advises users to either spend, withdraw, or convert their existing U.S. dollar balances to stablecoins for ongoing crypto-to-crypto transactions on the platform. Any residual U.S. dollar balances may be automatically converted into USDT at some future date.
More about Binance US Dollar Withdrawals
- Binance US Official Announcement
- U.S. Securities and Exchange Commission (SEC) Press Release
- BAM Trading Services Corporate Overview
- Impact on Crypto Trading Volume in the U.S.
- Legal Proceedings Against Binance and Affiliates
- Guide to Stablecoins and Digital Assets
7 comments
Its always something with these exchanges. Maybe it’s time we truly go decentralized and bypass these issues altogether.
This could have a ripple effect on the whole market, considering Binance’s role. Keep an eye on this, folks.
Wow, Binance US taking another hit huh? This whole thing with the SEC is really shaking things up. Not sure what to do with my USD there now.
So much for decentralization and freedom. Looks like Big Brother still has a say in how we manage our finances. Ugh.
Regulatory stuff is always confusing. But I guess its needed? Better be safe than sorry. Still, what a hassle for users.
Binance is still one of the giants, no matter what. They’ll find a way to bounce back, regulatory hurdles are part of the game.
Didnt see this coming. The SEC is really coming down hard on crypto platforms. Good to know for investors out there.