Binance to temporarily suspend bank transfers in US dollars beginning Feb. 8

Binance has announced that it is temporarily suspending slope transfers successful United States dollars (USD) opening Feb. 8. No different trading methods volition beryllium affected, the speech said successful a tweet connected Feb. 6.

The quality came with nary explanation, though the company, which is the world’s largest cryptocurrency exchange, added successful the aforesaid tweet that:

“We are moving hard to restart the work arsenic soon arsenic possible. […] All different methods of buying and selling crypto stay unaffected.”

Binance CEO Changpeng Zhao (CZ) said successful a abstracted tweet:

“It is worthy noting that USD slope transfers are leveraged by lone 0.01% of our monthly progressive users. However, we admit that this is inactive a atrocious idiosyncratic experience.”

The suspension seemingly applies lone to planetary Binance users, arsenic Binance.US tweeted that “our customers volition not beryllium affected.”

https://t.co/gM6e3xb9BX is not affected by this suspension. Unless you spot an authoritative connection from https://t.co/gM6e3xb9BX, our customers volition not beryllium affected.

— Binance.US Customer Support (@BinanceUShelp) February 6, 2023

Binance has had banking challenges successful the United States recently. Its SWIFT transportation spouse Signature Bank said connected Jan. 21 that it would lone process trades by users with USD slope accounts implicit $100,000, effectual Feb. 1. The slope had said antecedently that it was drastically reducing deposits from crypto clients.

Binance said astatine the clip that it was seeking a caller SWIFT spouse and trades with USD utilizing recognition oregon debit cards would inactive beryllium accepted, arsenic would each SWIFT trades utilizing different currencies.

Also connected Feb. 1, Binance published a database of 144 countries wherever USD SWIFT transfers of immoderate size would beryllium suspended.

Related: Binance stablecoin BUSD sees a crisp marketplace headdress driblet amid solvency and mismanagement worries

CNBC reports, citing Arkham Intelligence, that determination has been an contiguous outflow of Tether (USDT) and USD Coin (USDC) stablecoins pegged to the dollar to different exchanges, adding that the outflow was “tiny” compared to Binance’s $42.2 cardinal successful crypto assets.