Binance has announced that it is temporarily suspending bank transfers in United States dollars (USD) from February 8. No other trading method will be affected, the exchange said in a tweet on February 6.
The news has no details, although the company, which is the largest cryptocurrency exchange in the world, added in the same tweet:
“We are working hard to restart the service as soon as possible. […] All other ways to buy and sell crypto remain unaffected.
Binance CEO Changpeng Zhao (CZ) said in a separate tweet:
“It should be noted that USD bank transfers are only used by 0.01% of monthly active users. However, we appreciate that this is still a bad user experience.
The suspension only applies to international Binance users, as Binance.US tweeted that “our customers will not be affected.”
https://t.co/gM6e3xb9BX is not affected by this delay. Unless you see the official message from https://t.co/gM6e3xb9BX, customers will not be affected.
– Binance.US Customer Support (@BinanceUShelp) February 6, 2023
Binance has experienced banking challenges in the United States recently. The SWIFT transfer partner Signature Bank said on January 21 that it will only process trades by users with USD bank accounts over $100,000, effective February 1. The Bank has previously said that it will drastically reduce deposits from crypto clients.
Binance said at the time they are looking for new SWIFT partners and trades with USD using credit or debit cards will still be accepted, as well as all SWIFT trades using other currencies.
Also on February 1, Binance published a list of 144 countries where SWIFT USD transfers of any size will be suspended.
Related: Binance stablecoin BUSD sees sharp market cap amid solvency and mismanagement concerns
CNBC reported, citing Arkham Intelligence, that there was a direct outflow of Tether (USDT) and USD Coin (USDC) stablecoins pegged to the dollar to other exchanges, adding that the outflow was “small” compared to Binance’s $42 crypto asset, 2 billion. .