- Binance has temporarily halted withdrawals of $USDC for conducting a token swap.
- However, $USDT & BUSD and other stablecoins are available for withdrawals.
- “The situation will be restored when the banks open,” said Binance CEO.
The leading crypto exchange Binance has temporarily halted withdrawals of $USDC as it is conducting a token swap involving $USDC.
Binance, however, has made clear that both $USDT & BUSD and other stablecoins are available for withdrawals and remain unaffected by the token swap. $USDC will be allowed for withdrawals after the token swap is completed.
CEO Changpeng Zhao tweeted saying:
On USDC, we have seen an increase in withdrawals. However, the channel to swap from PAX/BUSD to USDC requires going through a bank in NY in USD. The banks are not open for another few hours. We expect the situation will be restored when the banks open.
Zhao further explained that the swaps are 1:1 conversions and do not involve any margin or leverage. Binance also intends to establish more fluid swap channels in the near future, added Zhao.
Notably, the Founder of Tron, Justin Sun recently withdrew 100M $USDC from Circle and transferred to Binance. Zhao later clarified that he remains unaware of the details regarding the transfer. In a response to a user’s query regarding crypto deposits, Zhao informed that deposits would not be affected.
Users took the news quite positively as they showed their support for Binance by saying that they would not want to withdraw. Many of them also praised the CEO for maintaining a level of transparency and trust with its users for setting up a productive trading environment at a time when FUD driven continues.
Showing gratitude to supportive tweets from users, Zhao added that FUD has only made Binance grow as FUD calls for spreading awareness
On the other hand, many users started drawing comparisons between Binance’s announcement with that made by the bankrupt crypto exchange FTX, a few months ago.