Binance Suspends USD Transfers As Banks Withdraw Support

Binance has announced a minor, temporary suspension for USD (U.S. Dollar) transfers on its exchange platform. The suspension will begin tomorrow, February 8th, 2023.

Citing the withdrawal of support from certain banks, Binance took to Twitter to announce its position on the matter.

From February 8th, we will temporarily suspend all USD bank transfers.

Only a small proportion of our users will be impacted by this and we are working hard to restart the service as soon as possible.

All other methods of buying and selling crypto remain unaffected.

— Binance (@binance) February 6, 2023

As mentioned, all other trading and transfer activities on the platform will remain operational, given how the suspension will only affect a small number of users. It is not certain at this point whether these suspensions are geographically distinct, or whether these are based on the banks partnered with Binance. At the time of writing, no perceivable disturbances or spikes on both the BNB Chain and its exchange smart contracts have been detected.

“While some banks [have been] withdrawing support for crypto, other banks are moving in. Some setbacks were expected from last year’s incidents,” Binance chief Changpeng Zhao said.

Zhao was making references to the downfall of FTX, whose founder Sam Bankman-Fried now faces a number of charges for fraud, money laundering, and trust law violations. Binance’s suspension of USD transfers is expected to be short-lived, and should not cause any major repercussions for its users’ crypto exchange activities. The crypto exchange plans on issuing more information regarding the USD transfer suspension when it can provide an estimate on when operations will resume.

Binance is one of the industry's more mainstream crypto exchanges in the world and continues to be a major player in crypto exchange markets, where traders can make crypto conversions easily with minimum fees charged, especially if a user opts to facilitate these trades with BNB, Binance's native crypto asset. With over 350 assets listed s across its platform, Binance facilitates roughly $38 billion worth of transactions each day.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.