BinanceUS to Halt USD Payments Support Amid Regulatory Challenges

BinanceUS to Halt USD Payments Support Amid Regulatory Challenges

BinanceUS has announced that its banking customers will discontinue support for USD payments starting next week, as revealed in a late Thursday announcement. The exchange has already paused USD deposits and has urged users to withdraw their USD funds through ACH by June 13.

BinanceUS attributed this development to the challenges arising from the recent Securities and Exchange Commission (SEC) lawsuit, which has impacted the banks it collaborates with. The banking partners will cease processing dollar payments around the same time a federal judge hears arguments regarding a temporary restraining order on the US trading affiliate.

This announcement follows closely on the heels of the SEC’s lawsuit against BinanceUS, Binance, and its CEO Changpeng Zhao. The SEC is seeking an asset freeze on BinanceUS, but it has also requested the court to approve a temporary restraining order allowing BinanceUS to continue processing customer withdrawal requests.

BinanceUS acknowledged the regulatory pressure it faces, stating that it has created challenges with its banking partners. In a Twitter statement, the exchange declared that they are temporarily suspending USD deposits and notifying customers that their banking partners are preparing to pause fiat (USD) withdrawal channels, possibly from June 13, 2023. BinanceUS advised its customers to take appropriate action with their USD funds.

In a customer notice shared on Twitter, BinanceUS confirmed that it will delist USD trading pairs (e.g., BTC-USD) while maintaining support for stablecoin pairs (e.g., BTC-USDT).

Customers were urged to withdraw their USD funds via bank transfer before June 13, 2023, with a note of caution that ACH withdrawals might take longer than usual to process due to increased volumes and potential bank closures during weekends.

BinanceUS described these measures as proactive steps during their transition to becoming a crypto-only exchange. The exchange clarified that it maintains a 1:1 reserve ratio for all customer assets.

Earlier on Thursday, BinanceUS had already announced the removal of ten different trading pairs in response to the SEC lawsuit.