Binance temporarily suspends dollar transfers

The cryptocurrency exchange announced the measure that will directly affect withdrawals in dollars from February 8

Binance, the world’s largest cryptocurrency exchange, announced a temporary suspension of US dollar (USD) bank transfers effective February 8.

The news came without any explanation, although the company added that they are working to resume service as soon as possible. According to Binance CEO Changpeng Zhao, dollar bank transfers are used by only 0.01 % of monthly active users, but they appreciate that this is still a bad user experience.

Binance has had banking problems in the United States recently. Its transfer partner SWIFT Signature Bank said on January 21 that it would only process transactions from users with bank accounts in dollars of more than 100,000 as of February 1st. The exchange responded by seeking a new SWIFT partner, noting that dollar trades using credit or debit cards and all SWIFT trades in other currencies would continue to be accepted.

According to CNBC, citing Arkham Intelligence, there was an immediate withdrawal of Tether stablecoins and dollar-pegged USD Coin to other exchanges. However, the withdrawals were “minuscule” compared to Binance’s $42.2 billion in crypto assets.

In addition to the temporary suspension of USD bank transfers, Binance has launched Binance Tax to help cryptocurrency users prepare for tax season.

K. Tovar

Source: Investing

(Reference image source: Kanchanara, Unsplash)

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