Binance, the largest cryptocurrency exchange in the world, announced Monday that it would stop all USD deposits and withdrawals from bank accounts beginning February 8.
According to the company, they will try to restart the feature as soon possible.
What is Suspension?
After Announcement Twitter suspended Binance, but it did not give any explanation. It clarified however that only a small percentage of its users would be affected by the pause.
The exchange offers all other options for buying and selling crypto, including credit cards, Apple Pay and Google Pay as well as bank transfers to fiat currencies such euros.
Binance spokesperson said that while only 0.01% of our monthly users use USD bank transfers, that service is being restarted as soon as possible. Bloomberg Send an email.
Binance.US clients are not affected by the plans – Binance.US is the only firm that has permission to service users in the United States. The company tweeted Monday that they were not suspending withdrawals and deposits in $USD on February 8.
After warnings from federal regulators, banks have been reluctant to enter partnerships with crypto companies since the collapse of FTX, Binance’s biggest international rival.
“While some banks [are] Binance CEO Changpeng Zhao tweeted that while the bank had announced their withdrawal of support for crypto, they are now moving in with other banks. “Some setbacks were anticipated from last year’s incidents.”
CZ stated that the USD bank transfer pause is still a bad user experience, despite having minimal impact on customers.
Signature Bank
Binance, a bank partner, announced in January that Signature Bank would be joining its ranks. Stop processing Transactions from fiat to cryptocurrency worth less than $100,000 The lender plans to reduce its exposure to crypto markets by removing deposits from crypto clients up to $10 billion.
This was done in response to a Statement According to the Federal Deposit Insurance Corporation, crypto-sector banks should be considered high-risk.