Binance.US, the American subsidiary of global cryptocurrency exchange Binance, has announced that it is suspending all United States dollar deposits and has informed its customers of an imminent pause to fiat (USD) withdrawal channels, which may begin as soon as June 13.
The surprising move comes after what the exchange described as “extremely aggressive and intimidating tactics” from the United States Securities and Exchange Commission (SEC). The SEC issued an emergency order on June 6, freezing the assets of Binance.US.
In response, the company took drastic measures, including the suspension of USD deposits effective from June 9, and communicated a potential halt to fiat withdrawal channels beginning from June 13. Binance.US, however, reassured its customers that their assets remained safe and that the platform continues to operate normally.
Cryptocurrency trading to continue despite disruptions
While disruptions to fiat transactions are anticipated, Binance.US confirmed that cryptocurrency transactions remain unaffected. Trading, staking, and cryptocurrency deposits and withdrawals continue to be fully operational, according to the company.
The firm also hinted at a possible transition towards a crypto-only exchange. In a statement released on June 9, Binance.US explained that this move aims to maintain a 1:1 ratio for customer assets, amidst what it described as the SEC’s “ideological campaign against the American digital asset industry.”
The notice also issued a warning about potential downtime in processing withdrawals, attributing it to possible elevated volumes and bank closures over the weekend.
Severing fiat on-ramps amid SEC’s scrutiny
In response to the SEC’s hard-line stance, Binance.US and its banking partners have faced increasing challenges. These banking partners are reportedly preparing to sever fiat on-ramps to the exchange.
The firm declared that U.S. dollar trading pairs will be delisted next week. However, it reassured users that it will continue to support Tether (USDT) trading pairs. The exchange advised customers that any USD remaining on the platform might be converted into a stablecoin, which could then be withdrawn on-chain.
On June 8, Binance.US had already delisted eight Bitcoin (BTC) pairs and two Binance USD (BUSD) pairs, while simultaneously pausing its Over-The-Counter (OTC) Trading Portal services.
Despite regulatory hurdles and asset freezing, the exchange maintained that it continues to be fully operational, providing services including deposits and withdrawals without disruptions. Binance.US, however, warned of possible changes and encouraged customers to follow updates closely.
