BREAKING: Binance.US Takes Defensive Action: Suspends USD Deposits and Warns of Fiat Withdrawal Pause Amid SEC Pressure

  • Binance.US halts all customer withdrawals and temporarily shifts to becoming an exclusively crypto-based exchange.
  • The price of Binance (BNB) has dropped below $270, marking its first decline to this level in the current year

Binance.US, in a tweet, has informed its users that it will halt all customer withdrawals and temporarily shift to becoming an exclusively crypto-based exchange.

On June 9, Binance.US stated that the “extremely aggressive and intimidating tactics” from the Securities and Exchange Commission of the United States (SEC) had compelled them to take action. The company emphasized its commitment to safeguarding its customers and platform by temporarily suspending the acceptance of USD deposits.

Moreover, Binance.US is “notifying customers that our banking partners are preparing to pause fiat (USD) withdrawal channels as early as June 13, 2023.” The exchange also said it intends to switch to a cryptocurrency-only exchange while reassuring customers that their assets will remain at a 1:1 ratio.

The announcement further warned that any delays in processing withdrawals in the future “may be the result of elevated volumes and weekend bank closures.” The company confirmed that trading, staking, deposits, and withdrawals involving cryptocurrencies are fully operational and unaffected by the changes.

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Due to the SEC’s ongoing efforts to suppress the American digital asset industry, Binance.US, and its banking partners have encountered escalating difficulties, leading the banking partners to express their intention to terminate the fiat on-ramps to the exchange. On June 9, the firm announced that it will temporarily halt USD deposits and remove USD trading pairs from the platform in the following week.

However, the exchange will still facilitate trading pairs involving USDT (Tether). They further stated that users could convert any remaining USD balance on the exchange into a stablecoin. In addition, they can then withdraw on the blockchain. On June 8, Binance.US removed ten trading pairs from its platform: eight pairs involving BTC and two pairs involving BUSD

Additionally, the company temporarily paused its OTC Trading Portal services. It is worth mentioning that in early May, BTC was traded at a higher price on the U.S. exchange than other platforms, and on June 6, the SEC issued an emergency order to freeze the assets of Binance.US. The next day, the company assured its customers that their assets were secure, emphasizing that the platform was operating without disruptions and that normal functionalities such as deposits and withdrawals were fully operational.

The price of Binance (BNB) has dropped below $270, marking its first decline to this level in the current year. At present, BNB is trading at $260.71.Additionally, over the past 24 hours, BNB has witnessed a marginal decrease of 0.01% in its value.

The cryptocurrency community eagerly awaits the resolution of this gripping dispute, recognizing its significant implications for the industry’s future. Binance.US’s bold stance against the SEC’s aggressive tactics reaffirms its commitment to protecting its customers and the American digital asset ecosystem. This decisive action sets the stage for a potentially transformative chapter in the cryptocurrency landscape.

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