Binance.US Suspends Direct Dollar Withdrawals

Binance.US, the U.S. subsidiary of the world's leading cryptocurrency exchange Binance announced that it has suspended direct US dollar withdrawals from the platform, following the updating of its terms of use on Monday.

According to the latest terms of use, US dollar deposits in Binance.US user wallets are no longer protected by FDIC insurance.

"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they may do so by converting U.S. dollar funds to stablecoin or other digital assets, which can subsequently be withdrawn," the US business said in an email to its users.

The 13 charges​ filed by the U.S. Securities and Exchange Commission (SEC) against Binance, Binance.US, and its founder Changpeng Zhao (CZ) on June 5 kicked off the 'fight' between the crypto giant and financial regulators in the country. On the 8th of the same month, Binance.US announced the suspension of its OTC trading and U.S. dollar deposits​, as well as the delisting of more than 100 trading pairs, most of which are USDT pairs. Meanwhile, the crypto exchange warned that its banking partners were preparing to pause fiat dollar withdrawal channels as early as June 13.

Binance has also been stymied in other markets. Earlier this month, the new digital assets promotional rules​ came into effect in the UK, and its local promotion approval partner was subsequently restricted by the UK's FCA. As a result, Binance had to halt new user registrations in the UK on Monday of this week (October 16th).