The founder and CEO of cryptocurrency exchange company Binance, Changpeng Zhao, speaks at a conference in Portugal in November. File Photo by Miguel A. Lopes/EPA-EFE
June 9 (MT Newswires) -- Binance.US announced Friday it was suspending U.S. dollar deposits and alerted its customers about an upcoming pause in fiat withdrawal channels.
The exchange's statement indicated that it had to take action in order to protect its customers and platform in the wake of actions by the U.S. Securities and Exchange Commission.
Binance.US informed its customers that its banking partners are preparing to temporarily pause the withdrawal of U.S. dollar funds starting Tuesday.
The company stated its intention to transition to a crypto-only exchange but assured customers that the ratio of their assets would be maintained at 1:1. The notice also warned that any delays in processing withdrawals in the future could be due to increased volumes and weekend bank closures.
Binance.US confirmed that cryptocurrencies' trading, staking, deposits and withdrawals remain fully operational. It attributed the challenges faced by Binance.US and its banking partners to the SEC's "ideological campaign against the American digital asset industry."
The banking partners have indicated their intention to sever fiat on-ramps to the exchange.
Effective Friday, U.S. dollar deposits will be suspended, and USD trading pairs will be delisted next week. However, Binance.US will continue to support trading pairs involving stablecoin tether. The company mentioned that any remaining U.S. dollars in customer accounts on the exchange might be converted into a stablecoin that can be withdrawn on-chain.
On Thursday, Binance.US delisted eight bitcoin pairs and paused OTC Trading Portal services.
On Monday, the SEC filed charges alleging securities law violation against Binance Holdings, BAM Trading Services and their founder, Changpeng Zhao.
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