Binance US, the domestic branch of the world’s premier cryptocurrency exchange, has confirmed the resolution of the USD withdrawal issues it was experiencing. Despite recently averting an asset freeze initiated by the United States Securities and Exchange Commission (SEC), the trading platform communicated to its customers that withdrawal services are likely to be suspended again.
Future Conversion of USD Balances to USDT Proposed by Binance US
The US arm of the prominent international digital asset exchange revealed that it has partnered with other firms to fix nearly all delayed USD withdrawals. It recommended users to retry previously unsuccessful withdrawal attempts, assuring them that the majority will be processed within five business days.
Simultaneously, the crypto exchange clarified that its systems are presently entirely functional but projected that its banking partners might halt the USD withdrawal service soon. They proposed:
As we continue our search for new partners to reestablish USD deposits and withdrawals, we recommend our users to utilize, withdraw, or convert their USD holdings into stablecoins to sustain crypto-to-crypto trading on the platform.
Earlier this month, Binance US paused USD deposits and withdrawals and directed customers to withdraw their dollars by June 13, citing the SEC’s legal action against them has “posed difficulties for our partner banks.”
The authority filed a lawsuit against the American exchange’s operators, BAM Trading Services and BAM Management US Holdings, including Binance founder Changpeng Zhao (CZ), accusing them of dealing in unregistered securities against U.S. laws and mismanaging user funds. Binance managed to prevent a freeze of its U.S. assets by negotiating an agreement with the SEC.
The US branch of Binance also revealed plans to transition into a crypto-only trading platform. In line with this change, any outstanding USD balances in customer accounts might be converted into tether (USDT) in the future, the firm announced, stating it plans to expand its trading offerings with the dollar-tied stablecoin and will eliminate most USD trading pairs on June 26.
“Subsequent to this, USD Advanced Trading pairs will only be available for the following digital assets: BTC, ETH, ADA, BNB, LTC, MATIC, SOL, VET, USDC, and USDT,” the exchange detailed, urging traders to fulfill or cancel any open orders with the dollar before these pairs are removed.
Despite the impact of the SEC’s litigation, Binance US reassured its customers that their assets are secure, even as recent data shows that its share of the U.S. crypto exchange market has decreased to roughly 1.5%.
Will Binance US be able to secure new banking alliances that enable them to permanently reinstate USD deposits and withdrawals? Share your thoughts in the comments section below.
Frequently Asked Questions (FAQs) about USD withdrawals
Will Binance US permanently restore USD deposits and withdrawals?
At the moment, Binance US has resolved the USD withdrawal issues but anticipates future suspensions. They are actively seeking new banking partnerships to reinstate USD deposits and withdrawals permanently. However, the outcome remains uncertain.