American Binance reported that it will pause US dollar (USD) deposits on its platform. The note was published on their social networks this Thursday (8) and will take effect immediately.
After this, the brokerage also announces that its banking partners are preparing to cut ties with it. Therefore, dollar withdrawals are not available at any time and amounts can get tied up in the brokerage.
As a recommendation, Binance.US urges its customers to withdraw their funds in advance, limiting major problems.
Binance.US blames SEC, saying it is becoming a cryptocurrency-only exchange
According to Binance, the decision to pause deposits and recommend withdrawals is related to the ideological attack by the US Securities and Exchange Commission, the SEC. In the note, Binance.US states that it will become a cryptocurrency-only exchange.
“The SEC proceeded to use extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the US digital asset industry”wrote Binance.US. “As a result […] Today, we are suspending USD deposits and informing customers that our banking partners are preparing to pause fiat (USD) withdrawal channels as early as June 13, 2023.”
“We encourage customers to withdraw their dollars by wire transfer no later than June 13, 2023.”
As always, the brokerage reported that it is not insolvent, with reserves of 1:1 in relation to its users’ balance. Due to the rush of withdrawals, exacerbated by the weekend, Binance.US has noticed that withdrawal processing can be delayed.
Finally, Binance.US claims that cryptocurrency deposits and withdrawals will remain fully operational and that it will become a cryptocurrency-only exchange.
“Binance.US will continue to vigorously defend ourselves, our clients and the industry against the SEC’s meritorious attacks.”
The SEC has begun using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the US digital asset industry. https://t.co/AZwoBOgsqS and our business partners have not been spared in using these tactics, making… pic.twitter.com/rlIe6swIoY
— Binance.US 🇺🇸 (@BinanceUS) June 9, 2023
Binance Global Announces Maintenance of BEP2 Network Wallets
Meanwhile, also this Thursday (8), Binance.com announced that it will be performing maintenance on BEP2 (BNB Beacon Chain) network wallets.
As a result, deposits and withdrawals are paused for about an hour. The update will take place next Monday (12) at 4 AM in Brasília time (BRT) and due to the time it should not affect most Brazilians.
Trading in cryptocurrencies linked to the BEP2 network will remain normal during the period.
Finally, investors are closely watching the SEC lawsuit over Changpeng Zhao’s two brokers. Binance Coin (BNB) is trading at $262 this morning on Friday (9) with no major changes in price, the same goes for Bitcoin and other major cryptocurrencies.
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.
