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Binance US has modified its terms of use, eliminating dollar withdrawals and changing the language surrounding Federal Deposit Insurance Corporation (FDIC) insurance.
Currently, the link on Binance US’s Terms of Use page to ‘Download Previous Version’ returns an ‘Access Denied’ error, but accessing the terms of service through archive sites is still possible.
The new terms no longer make the claim that users who hold fiat at Binance US are eligible for passthrough insurance from the FDIC, and users on X (formerly Twitter) have shared screenshots of an email supposedly from Binance US that details how this change was made “in accordance with guidance received from the Federal Deposit Insurance Corporation.”
This is the email Binance sent to customers informing them that their USD has been rugged from real USD into BNB/BUSD pic.twitter.com/5EAhyic9GP
— Asher Hopp (@AsherHopp) October 17, 2023
Read more: Binance customers have traded against themselves with real money for six years
Furthermore, the language surrounding dollar withdrawals in the Binance US terms has been changed, now informing users that “in the event you wish to withdraw US dollar funds from your account, you may convert such US dollar funds to stablecoin or other digital assets, which can subsequently be withdrawn.”
Currently, Binance US has a few stablecoins on offer, including USDT, USDC, DAI, and BUSD. BUSD, the Binance-branded stablecoin, has been effectively shut down after action from the New York Department of Financial Services following Binance’s failure to adequately manage Binance-peg BUSD.
Binance US had previously suspended dollar deposits following a Securities and Exchange Commission (SEC) lawsuit against it and its sister firm, Binance. At the time, Binance US cited “aggressive tactics” by the SEC as the reason it could no longer offer dollar deposits.
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