Binance has announced that it will temporarily suspend US dollar (USD) bank transfers from February 8. The exchange said in a tweet on February 6 that other trading methods would not be affected. Here are the details…
Binance suspends USD trading
As we reported as Kriptokoin.com, the latest statement of Binance, the world’s largest cryptocurrency exchange in terms of daily trading volume, covered US dollar transfers from banks. The company, the world’s largest cryptocurrency exchange, announced that it will suspend bank transfers in USD from February 8. The news came without any explanation, though he added the following in the same tweet:
We are working hard to restart the service as soon as possible. […] Other methods of trading crypto are unaffected.
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
Binance implied that the move was not significant, pointing out that only 0.01 percent of its active users actually used US dollar wire transfers. Exchange CEO Changpeng Zhao (CZ) said in a separate tweet:
It is worth noting that only 0.01 percent of our monthly active users benefit from US Dollar bank transfers. However, we understand that this is still a bad user experience.
https://twitter.com/cz_binance/status/1622671404264226816
The exchange is looking for a new SWIFT partner
“Our customers will not be affected,” Binance.US, the US arm of Binance, tweeted. So, it appears that the suspension process applies to international Binance users. Binance has had banking problems in the United States recently. SWIFT transfer partner Signature Bank said on January 21 that it will only process transactions from users with USD bank accounts over $100,000 from February 1. The bank has previously said that it will drastically reduce deposits from crypto clients.
Binance said it was looking for a new SWIFT partner at the time and, like all SWIFT transactions using other currencies, transactions in USD using credit or debit cards will continue to be accepted. Also on February 1, Binance released a list of 144 countries where USD SWIFT transfers of all sizes will be suspended. Following this development, CNBC reported an immediate outflow of dollar-pegged USDT and USDC stablecoins to other exchanges, citing Arkham Intelligence. Still, he added that the exit was “small” compared to Binance’s $42.2 billion in crypto assets.
BNB was unaffected
Users can continue to seamlessly use other crypto trading methods such as credit cards on Binance. Also, Binance US was not affected by the sudden suspension. Binance’s native exchange token, BNB, remained stable despite the news. At the time of writing, the value of BNB is at $328, up 1.5 percent. In the last seven days, the coin managed to rise by 7 percent. BNB has been the fourth coin by market cap for a while now.
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