Binance.US, a prominent crypto exchange, today announced changes to its terms of use, effectively preventing users from directly withdrawing U.S. dollars from their accounts. As per the updated terms, users seeking to withdraw dollars must first convert these funds to stablecoins or other digital assets, which can then be withdrawn.
The move comes after Binance.US had, earlier in June, ceased dollar deposits, pointing to the U.S. Securities and Exchange Commission’s (SEC) assertive stance on the cryptocurrency industry. Binance.US at the time further hinted that banking partners might stop dollar withdrawals by June 13. This hardline approach by the SEC has led many banking partners to hesitate in their dealings with the crypto sector.
“In the event that 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they may do so by converting U.S. dollar funds to stablecoin or other digital assets, which can subsequently be withdrawn,” the company said in a statement.
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READ: Binance.US Sees CEO Resign, Cuts Third Of The Workforce, Then Blames The SEC
To compound matters, Binance.US users also learned today that their U.S. dollar funds held in Binance.US wallets would no longer enjoy protection from the Federal Deposit Insurance Corporation (FDIC).
Information for this briefing was found via CoinDesk and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
