Binance.US Restricts Dollar Withdrawals Amidst SEC Legal Battle

Binance.US, one of the largest cryptocurrency exchanges in the United States, has implemented significant changes to its platform, leaving users unable to withdraw dollars directly. The move follows the exchange’s update of its terms of use on Monday, which has sparked concerns among its customer base.

According to an email sent to users, Binance.US stated, “In the event that customers wish to withdraw U.S. dollar funds from their account, they may do so by converting U.S. dollar funds to stablecoin or other digital assets, which can subsequently be withdrawn.” This change means users are now required to convert their dollars to cryptocurrencies or stablecoins before making any withdrawals.

The decision to halt direct dollar withdrawals came after Binance.US suspended dollar deposits in early June. At that time, the exchange cited the U.S. Securities and Exchange Commission’s (SEC) “extremely aggressive and intimidating tactics” against the crypto industry as the reason for banking partners’ reluctance to engage with the sector. In the same announcement, Binance.US warned customers that its banking partners were preparing to pause dollar withdrawals as early as June 13.

The SEC’s legal battle with Binance.US escalated when the regulatory body sued the exchange, along with its international arm Binance and its founder Changpeng “CZ” Zhao, on June 5. The lawsuit alleged that Binance.US was operating unregistered securities platforms, prompting a series of legal challenges and inquiries into the exchange’s practices. The SEC specifically questioned the company’s custody practices and its willingness to cooperate in legal requests.

This move by Binance.US has raised concerns among cryptocurrency enthusiasts and investors who rely on the platform for trading and managing their digital assets. Many users are questioning the impact of these restrictions on the usability and accessibility of their funds.

Binance.US has yet to comment on the recent changes or provide further details about the decision to limit dollar withdrawals. The cryptocurrency community and industry experts are closely monitoring the situation, anticipating further developments as the legal battle between Binance.US and the SEC continues to unfold. Read More

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