Binance.US Suspends Direct USD Withdrawals

The updated terms of use have rendered U.S. dollar deposits in user wallets ineligible for FDIC insurance coverage.

Following the modification of its terms of use on Monday, Binance.US users are no longer able to directly withdraw dollars from the platform.

The email notification stated:

 "Should customers wish to withdraw U.S. dollar funds from their account, they may do so by converting U.S. dollar funds to stablecoin or other digital assets, which can subsequently be withdrawn."

Back in early June, the company halted dollar deposits, citing the "extremely aggressive and intimidating tactics" of the U.S. Securities and Exchange Commission (SEC) against the crypto industry, which led banking partners to become hesitant about involvement in the sector.

Simultaneously, Binance.US cautioned customers that its banking partners were gearing up to suspend dollar withdrawals as early as June 13.

On June 5, the SEC filed a lawsuit against Binance.US, the firm's global arm Binance, and its founder Changpeng "CZ" Zhao, alleging the operation of unregistered securities platforms. The SEC has since raised concerns about the company's custody practices and its willingness to cooperate with legal requests.

Furthermore, Binance recently parted ways with its euro payments partner, although a replacement has yet to be disclosed.

The updated terms of use on Monday also indicated that U.S. dollar funds held in Binance.US wallets no longer benefit from deposit insurance coverage provided by the Federal Deposit Insurance Corporation (FDIC).

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