- Binance.US has announced the suspension of USD withdrawals.
- The development comes after the exchange halted USD deposits earlier.
- Observers believe the development stems from regulatory heat.
Crypto regulation in the U.S. is a two-sided coin. One side seems to foster adoption and acceptance by reassuring investors of protection, while the other pushes companies to be cautious about their products and services.
In a move to deflect regulatory heat from the U.S. securities watchdog (SEC), Binance.US officially suspended US dollar (USD) withdrawals, according to the revised terms of services shared on the exchange’s official website.
USD Withdrawals Suspended
On October 16, Binance.US updated its terms of service, blocking customers from withdrawing USD funds deposited into the platform.
Per media reports, the exchange sent a follow-up email to its U.S. customers, urging them to explore alternative options for liquidating their USD deposits.
“In the event that customers wish to withdraw US dollar funds from their account, they may do so by converting US dollar funds to stablecoin or other digital assets, which can subsequently be withdrawn,” the email stated.
While several reasons could have prompted Binance.US to disable USD withdrawals, including the hesitation of banking partners to engage in crypto, it’s not rocket science to decipher that the move has been largely influenced by recent regulatory actions against the exchange and its affiliated companies.
Did the SEC Force Binance’s Hand?
On June 9, when Binance.US halted USD deposits, the exchange cautioned its customers about an upcoming suspension of USD withdrawals, citing “extremely aggressive and intimidating tactics” from the Securities and Exchange Commission.
This announcement came after the securities watchdog filed 13 charges against Binance entities and Founder Changpeng “CZ” Zhao on June 5, accusing the parties of running unregistered exchanges and misrepresenting trading controls and oversight on the Binance.US platform.
Fast forward to August, the regulator filed a sealed motion in court against Binance, a move that former SEC Chief John Reed Stark stated could be connected to an ongoing criminal probe into the exchange.
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