The cryptocurrency industry is currently facing heightened scrutiny from law enforcement agencies. In the wake of the Securities and Exchange Commission’s recent lawsuit targeting major exchanges Binance and Coinbase, the crypto market has experienced significant repercussions. Binance.US, the US division of the world’s largest exchange, has now made the decision to suspend USD deposits in light of the ongoing legal action.
Binance.US has officially announced that its banking partners will cease processing USD payments starting from June 13, 2023. Effective immediately from June 9, USD deposits will be temporarily suspended. Additionally, 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 assured users that any remaining USD balances on the platform can be converted into a stablecoin, which can then be withdrawn on-chain.
It is important to note that other services such as trading, staking, deposits, and withdrawals will continue to operate normally. However, Binance.US has acknowledged the potential for withdrawal delays, citing increased volumes and weekend bank closures as contributing factors.
The exchange has expressed its intention to transition into a crypto-only platform, ensuring that customers’ assets will maintain a 1:1 ratio until it establishes more stable banking partnerships.
Why did Binance.US take this action? The suspension of USD deposits while operating in the US undoubtedly carries negative implications for several reasons. In a recent tweet, Binance.US provided insight into the reasoning behind its decision, stating:
“The SEC has resorted to using extremely aggressive and intimidating tactics in its crusade against the American digital asset industry. Binance.US and our business partners have not been spared from these tactics, which has led to…”
— Binance.US 🇺🇸 (@BinanceUS) June 9, 2023
Earlier this week, Binance.US also chose to delist ten trading pairs from its platform. These pairs included eight Bitcoin (BTC) pairs and two Binance USD (BUSD) pairs. Simultaneously, the exchange temporarily suspended its OTC Trading Portal services.
Regarding the path forward, Binance.US stated:
“While we remain open to a constructive compromise that fosters a thriving digital asset marketplace in America, Binance.US will continue to vigorously defend ourselves, our customers, and the industry against the baseless attacks of the SEC.”