Binance halts dollar withdrawals for U.S. customers

Binance.US said it has halted direct dollar withdrawals for U.S. customers.

In its updated terms on Monday, the U.S. affiliate of the Binance exchange allowed users to convert their U.S. dollar funds to stablecoins or other digital assets to withdraw funds from their accounts.

The digital assets do not qualify for insurance coverage by the Federal Deposit Insurance Corp., consistent with prior updates, it added.

In March, Binance.US faced legal action from the Commodities Futures Trading Commission for allegedly providing unregistered derivative products. Subsequently, on June 9, the platform suspended dollar deposits, emphasizing customer protection, following a Securities and Exchange Commission lawsuit concerning securities violations.

If Binance.US ends its association with a U.S. dollar custodian, users will receive a notification and a specified withdrawal period; any unclaimed funds will then be converted into stablecoin digital assets, according to the statement.

The latest update differs from terms posted in May, particularly regarding FDIC insurance and Binance.US's relationship with USD custodians.

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