The crypto industry has been dealing with intense scrutiny from law enforcement. The Securities and Exchange Commission’s latest lawsuit against Binance and Coinbase has left a prominent impact on the crypto market. In light of the ongoing lawsuit, Binance.US, the world’s largest exchange’s U.S. wing, has made this decision to suspend U.S. dollar [USD] deposits.
Binance.US has made an announcement stating that its banking partners will no longer process U.S. payments starting June 13, 2023. Binance.US revealed that USD deposits will be suspended from June 9. USD trading pairs will be delisted in the following week. However, the exchange will continue to support trading pairs involving USDT. Binance.US has also informed users that any remaining USD balances on the exchange may be converted into a stablecoin, which can then be withdrawn on-chain.
However, it should be noted that other services like trading, staking, deposits, and withdrawals will be fully operational. But to address potential withdrawal delays, Binance.US has mentioned that increased volumes and weekend bank closures could be contributing factors.
The exchange has expressed its plans to shift towards becoming a crypto-only platform while assuring customers that their assets will maintain a 1:1 ratio. This is until it secures more stable banking partners.
Why did Binance.US take such a step?
Suspension of USD deposits while operating in the U.S. is undoubtedly detrimental for an array of reasons. Elaborating on why the platform chose this path, Binance.US said the following:
Earlier this week, Binance.US made the decision to delist ten trading pairs from its platform. These delisted pairs consisted of eight Bitcoin [BTC] pairs and two Binance USD [BUSD] pairs. The move occurred concurrently with the temporary pause of its OTC Trading Portal services.
Further speaking about the way forward, the exchange wrote:
“While we remain open to a productive compromise that enables a thriving digital asset marketplace in America, Binance.US will continue to vigorously defend ourselves, our customers, and the industry against the meritless attacks of the SEC.”– Binance US