Feb 6, 2023
Binance Plans to Suspend US Dollar Transfers Using Bank Accounts
(Bloomberg) -- Binance, the world’s largest cryptocurrency exchange, said it’s temporarily suspending deposits and withdrawals of US dollars using bank accounts, and will work to restart the service soon.
The suspension will start Wednesday, according to a Binance spokesperson. No specific reason was given for the suspension. Bank transfers using other fiat currencies, such as euros, are unaffected, the representative said.
“It’s worth noting that only 0.01% of our monthly active users leverage USD bank transfers, but that we are working hard to restart service as soon as possible,” the spokesperson said in an emailed statement. Other methods of buying and selling crypto on Binance, such as via credit card, Google Pay and Apple Pay, “remain unaffected.”
Binance US, a separate entity designed for US users, said it’s not affected by the move.
Crypto companies have had difficulties finding banking partners to facilitate the sending of money to buy and sell digital assets. Following the collapse of FTX, banks have been warned by federal regulators of the risks of doing business with crypto firms.
While some banks are “withdrawing support for crypto, other banks are moving in,” Binance Chief Executive Officer Changpeng Zhao said on Twitter in response to the Binance announcement. “Some setbacks were expected from last year’s incidents.”
Last month, Binance said its banking partner Signature Bank would handle user transactions only if they’re for more than $100,000 as the lender decreases its exposure to digital-asset markets. The New York-based bank said in December it intends to cut as much as $10 billion in deposits from crypto clients.
A spokesperson for Signature said Monday that the bank can’t comment on client-related matters.
(Updates with comment from Binance US, Changpeng Zhao starting in fourth paragraph.)
©2023 Bloomberg L.P.