The founder and CEO of the cryptocurrency exchange company Binance, Changpeng Zhao, captured during a conference in 2022. File Photo by Miguel A. Lopes/EPA-EFE
Binance.US has announced the suspension of direct dollar withdrawals for customers in the United States.
In an updated release on Monday, Binance’s U.S. affiliate informed users that they will now be able to convert their U.S. dollar funds into stablecoins or other digital assets, allowing them to withdraw funds from their accounts.
It is important to note that the digital assets are not eligible for insurance coverage by the Federal Deposit Insurance Corp., as stated in previous updates.
Legal action was taken against Binance.US by the Commodities Futures Trading Commission in March for allegedly offering unregistered derivative products. Consequently, on June 9, the platform suspended dollar deposits, prioritizing the protection of its customers, due to a Securities and Exchange Commission lawsuit related to securities violations.
If Binance.US terminates its association with a U.S. dollar custodian, users will be notified and provided with a specified withdrawal period. Any unclaimed funds will then be converted into stablecoin digital assets, according to the official statement.
The most recent update differs from the terms that were posted in May, particularly in relation to FDIC insurance and Binance.US’s affiliation with USD custodians.
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