Global crypto exchange Binance is suspending US dollar deposits and withdrawals via bank accounts starting Wednesday as more banking institutions attempt to reduce their exposure to the crypto 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 would suspend US dollar withdrawals and deposits using bank accounts from Wednesday. Without giving a reason, a Binance spokesperson told CNBC:
We are temporarily suspending USD bank transfers starting February 8. Affected customers are being notified directly… We are working hard to restart service as soon as possible.
“0.01% of our monthly active users leverage USD bank transfers,” the spokesperson continued, noting that bank transfers using other fiat currencies and other methods of buying and selling crypto -currencies on Binance, such as using credit cards, Google Pay and Apple Pay, “not to be affected.”
Nonetheless, the spokesperson asserted, “We are still extremely positive on net deposits…Outflows are still rising when prices start to stabilize following a bull market movement like we saw last week so that some users were taking profits.”
Meanwhile, Binance US, a unit of Binance that is regulated by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), clarified on Twitter that it is a separate entity from Binance and that its customers do not are not affected by the suspension.
Banks are reducing their exposure to the crypto market
A growing number of banks have reduced their exposure to the crypto market following the collapse of crypto exchange FTX.
Binance said last month that its banking partner Signature Bank would only process transactions above $100,000 from the start of this month. The bank has previously said it plans to cut up to $10 billion in deposits from cryptocurrency customers.
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 organizations of crypto risks. “Agencies have significant safety and soundness concerns with business models that are concentrated in crypto-asset-related business or have concentrated exposures to the crypto-asset industry,” the joint statement read.
What do you think of Binance stopping US dollar withdrawals and deposits via bank accounts? Let us know in the comments section below.
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