Binance to suspend US Dollar transfers

The world’s biggest crypto exchange Binance will stop allowing transactions using US Dollars starting Wednesday, February 8. This was confirmed on their official Twitter page and was also announced in several major news outlets. 

Crypto experts said that the temporary suspension comes in as a little bit awkward in the industry as some of Binance’s competitors like FTX are already facing fallouts. Some users also think that this move from Binance might be related to the issues of the said competitor. 

The suspension is temporary and covers all deposits and withdrawals made with accounts that use USD. This means that investors will no longer be able to send US dollars from their bank accounts to the platform to purchase coins like Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE), Solana (SOL), and other coins. Simply, US dollars can no longer be transferred to the accounts of investors who wish to sell their coins. Other currencies such as Euros and British Pounds are unaffected by this announcement. 

The announcement 

Binance posted this announcement on their Twitter page: ‘From February 8th, we will temporarily suspend all USD bank transfers. Only a small proportion of our users will be impacted by this and we are working hard to restart the service as soon as possible. All other methods of buying and selling crypto remain unaffected’. 

The team also mentioned that only 0.01% of their total users leverage USD bank transfers. They also made it clear that they are working hard to restart the service as soon as they can. 

Binance’s spokesperson also said, ‘In the interim, all other methods of buying and selling crypto remain unaffected, including bank transfer using one of the other fiat currencies supported by Binance (including Euros), buying and selling crypto via credit card, debit card, Google Pay and Apple Pay and via our Binance P2P (peer-to-peer) marketplace’. 

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Possible reason

According to some experts, the issue may be related to a problem with Binance's American banking partner, Signature Bank. This is because cryptocurrency exchanges like Binance rely on partners to allow the transfer of funds between blockchain wallets and conventional bank accounts. Also, Signature Bank hinted last month that it would considerably reduce its exposure to crypto assets and refrain from accepting blockchain deposits. 

Its impact on Binance US

Binance US, which is a subsidiary of the said crypto exchange, remains unaffected by this announcement. Therefore, Binance US users don’t have to worry about making transactions with the currency they hold. This was also confirmed by Binance and its spokesperson who made it clear that the services for Binance US are still continuous. 

With that, crypto investors will just have to wait and see when this will last. To learn more about the latest crypto news, head over to Gamdom where you can also check out some impressive Bitcoin casino games you can play with your crypto assets. 

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Words: Kyra Jimenez