coinspress.com
Binance.US has taken a significant step in response to heightened regulatory scrutiny by temporarily discontinuing the withdrawal of US dollars (USD).
This decision arises from recent adjustments to their terms of use, which came into effect this week.
Users were informed of these changes via email, which outlined a new requirement for Binance.US customers. They are now asked to convert their USD into “stablecoin or other digital assets” before initiating withdrawals. Furthermore, the revised terms also specify that FDIC insurance no longer covers deposits in US dollars.
In recent months, Binance has encountered considerable challenges with US regulators, including legal actions pertaining to its operations within the country. As a result of these developments, the platform has found it necessary to suspend certain withdrawal capabilities following an earlier suspension of dollar deposits during the summer months.
This week, Binance.US officially implemented the suspension of US dollar (USD) withdrawals. The modification was introduced as part of updates to their terms of use, with user notification via email. Additionally, the email explained the new process for accessing US dollar funds.
READ MORE: ARK Invest CEO Questions SEC’s Bitcoin ETF Hurdles
The email conveyed, “To withdraw US dollar funds from your account, you will need to convert them into stablecoin or other digital assets, which can then be withdrawn.”
The suspension of dollar deposits was directly linked to increased regulatory pressure from the US Securities and Exchange Commission (SEC), which had taken an aggressive stance against Binance. Subsequently, Binance’s banking partners grew hesitant to continue their collaboration, further compounded by an SEC lawsuit filed against Binance.US in June.