Crypto News – The American branch of Binance told users today that the FDIC no longer provides insurance for cryptocurrency assets on the exchange.
FDIC Insurances of Crypto Deposits No Longer Applicable, According to Binance US
Users were informed via email today that Binance US had “updated the deposit insurance language” in the company’s terms of service. It stated that it had carried out this action in accordance with FDIC instructions. In a now-deleted blog article, the company initially declared that Binance US accounts were insured up to $250,000 in 2019.
All USD deposits are held in pooled custodial accounts at multiple banks that are insured by the FDIC. The pooled custodial accounts are maintained in a manner that provides access to pass-through FDIC insurance coverage up to the depositor coverage limit, which is currently $250,000.
the post
Terms of Service Updated After FDIC Announcement
The update follows the FDIC’s recent notice informing people that funds deposited with providers of financial services based on cryptocurrencies are not insured or protected by the FDIC.
Know that crypto deposits are not FDIC-insured, period. If something happens, the government may not have an obligation to step in and help get your money back.
FDIC’s statement
According to the exchange’s amended terms of service, “Your accounts and digital assets are not eligible for FDIC insurance protections.” Users won’t be able to withdraw US dollars without first converting them into stablecoins or another cryptocurrency, according to the upgrade.
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