Binance, the world’s largest cryptocurrency exchange, announced Monday that it will suspend all USD deposits and withdrawals from bank accounts starting February 8.
The company said it will work to restart the feature as soon as possible.
Why the Suspension?
After announcing the suspension of Twitter, Binance did not offer any particular explanation as to why it was occurring. However, she clarified that the pause would only affect a small part of her user base.
All other methods of buying and selling cryptocurrency on the exchange will remain effective, including credit cards, Apple Pay, Google Pay, and bank transfers with other fiat currencies, such as the euro.
“It is worth noting that only 0.01% of our monthly active users take advantage of USD bank transfers, but we are working hard to restart the service as soon as possible,” a Binance spokesperson said. Bloomberg in an email.
The plans also do not affect clients of Binance.US, the only firm between the two allowed to serve users within the United States. “We will NOT be suspending $USD withdrawals and deposits on February 8th,” the company tweeted on Monday.
The collapse of FTX, once Binance’s biggest international rival, has made banks hesitant to form partnerships with crypto firms, after federal regulators issued warnings against such partnerships.
Although some banks [are] Withdrawing support for cryptocurrencies, other banks are moving in, Binance CEO Changpeng Zhao tweeted regarding the announcement. “Some setbacks were expected from the incidents last year.”
CZ added that the pause on USD bank transfers is still a “bad user experience”, despite its minimal impact on customers.
In January, Binance announced that one of its banking partners, Signature Bank, stop processing Fiat to crypto transactions worth less than $100,000. The lender intends to decrease its exposure to crypto markets, cutting up to $10 billion in crypto customer deposits.
The move was in response to a statement from the Federal Deposit Insurance Corporation that banking in the crypto sector should be considered a high-risk activity.
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