The world’s largest exchange, Binance, has announced that the dollar will no longer be supported on its platform, primarily through wire transfers. The measure will start to pay off in the coming days.
Given that the dollar is the largest fiat currency in the world, many users found the new policy a controversial move.
It is worth remembering that transactions in Brazilian Real, Euro and other fiat currencies are not suspended and continue as usual with the brokerage.
Binance CEO acknowledges that suspending the dollar is a bad user experience
Through its official profile, Binance announced the new measure last Monday (6), which will take effect on Wednesday (8). That is, a sudden change with a tight deadline for users using the service to prepare.
Blocking withdrawals and deposits via Dollar, Binance says the measure is temporary and won’t be long before a fix is found.
In a note, the broker said few users are using the service and may face issues in continuing operations.
“As of February 8, we will temporarily suspend all bank transfers in USD. Only a small fraction of our users will be affected and we are working hard to get the service back up and running as soon as possible. All other methods of buying and selling cryptocurrencies remain unchanged.”
As of February 8, we are temporarily suspending all USD bank transfers.
Only a small fraction of our users will be affected and we are working hard to get the service back up and running as soon as possible.
All other methods of buying and selling crypto remain unaffected.
— Binance (@binance) February 6, 2023
According to Binance CEO CZ, few users should be affected by the blocking of the Dollar. However, he recognized publicly that this is an unpopular measure as it detracts from the user experience.
“It is worth noting that USD bank transfers are only used by 0.01% of our monthly active users. However, we recognize that this is still a poor user experience and the team is working to resolve this issue quickly.”
It is worth remembering that in 2022 Binance also had problems with transactions in Real, going several days without releasing withdrawals and receiving deposits from customers in Brazil.
Binance customers in the United States are not affected by the suspension
What draws attention to the matter still concerns US customers, who use the Binance.US platform in their operations.
Since only dollar transactions on Binance.com will go through the block, North Americans will have no problem sending their coins to the exchange, the platform’s support service confirmed.
Hi there, this announcement applies to https://t.co/J2rqPPlLbO users. If you have any questions about your https://t.co/P4F4ZqajGN account, please contact @BinanceUShelp, we are sure they will be happy to assist you. -MK
— Binance Customer Support (@BinanceHelpDesk) February 6, 2023
In any case, the cryptocurrency market is following closely, even if the user base using Dollars is small. Transactions in Dollar stablecoins, on the other hand, continue to function normally on the exchange.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
