- Binance tweeted that it has decided to suspend USD transactions from February 8.
- The company added that the suspension will be applicable only to international Binance users.
- It is also informed that all other transactions would be unaffected by the move.
The biggest cryptocurrency exchange Binance announced that the firm would temporarily suspend US dollar transactions from February 2023. Though the company failed to provide further explanation for halting the transactions, it said that except for USD transactions, all other crypto transactions would remain uninfluenced.
On February 7, Binance tweeted sharing the company’s decision to halt USD transactions and securing that the company “is working hard to restart the service as soon as possible”:
Notably, Changpeng Zhao, the CEO of Binance commented that the USD transfers comprise only 0.01%: “It is worth noting that USD bank transfers are leveraged by only 0.01% of our monthly active users. However, we appreciate that this is still a bad user experience.”
Interestingly, the well-known Twitter user who advocates for Bitcoin, Andrew, shared a tweet subsequent to Binance’s declaration of USD transaction halt, stating that Binance hasn’t found a banking partner to facilitate USD transactions:
Significantly, as per the notification, the suspension of transactions would be applicable only to international Binance users. The platform assured that “unless users see an official message from Binance.US, its customers will not be affected”.
Meanwhile, a Binance spokesperson commented on the efforts of the company stating:
We’re still overwhelmingly net-positive on net deposits. Outflows always tick up when prices start to level off following a bullish market swing like we saw last week as some users take profits.
It is noteworthy that Binance had been subjected to banking challenges recently, especially in connection to its SWIFT partner, Signature Bank. The bank told that it would comply only with the transactions of USD accounts over $100,000.
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