Binance has announced the temporary suspension of bank transfers in US dollars, starting on February 8th.
Banking Challenges in the US
However, this announcement only affects international Binance users and not Binance.US customers. The company has stated that all other methods of buying and selling crypto will not be impacted.
Recently, Binance has faced banking challenges in the United States. Its SWIFT transfer partner, Signature Bank, announced that it would only process trades for users with USD bank accounts over $100,000, starting February 1st.
Binance has responded by seeking a new SWIFT partner and continues to accept USD trades using credit or debit cards and SWIFT trades using other currencies.
Impact on Tether USDT and USD Coin USDC Stablecoins
On February 1st, Binance also published a list of 144 countries where USD SWIFT transfers of any size would be suspended.
According to CNBC, citing Arkham Intelligence, there has been a small outflow of Tether USDT and USD Coin USDC stablecoins pegged to the dollar to other exchanges, compared to Binance’s $42.2 billion in crypto assets.
Yes I know they are separate entities but do not know if they use the same withdrawal processor. Hence the question.
— BTFD (@BTFD2021) February 6, 2023
Recommended reading: 5 Tips for Beginner Bitcoin Traders
(Image credit: logll.com)
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Frequently Asked Questions
FAQ:
❓ What is Binance and what does it do?
Binance is a cryptocurrency exchange platform that allows users to buy, sell, and trade various cryptocurrencies. It was founded in 2017 and has since become one of the largest cryptocurrency exchanges in the world.
Binance offers a variety of features, including a basic and advanced trading interface, support for multiple languages, and a mobile app. The platform also offers its users the ability to trade on margin and participate in various token sales.
✔️ Why is Binance temporarily suspending bank transfers in US dollars?
The reason for the temporary suspension of bank transfers in US dollars by Binance has not been explicitly stated.
However, the company has recently faced banking challenges in the United States, and its SWIFT transfer partner, Signature Bank, announced that it would only process trades for users with USD bank accounts over $100,000, starting February 1st. It is possible that this temporary suspension is related to these challenges.
🚀 Who is affected by the temporary suspension of bank transfers in US dollars on Binance?
The temporary suspension of bank transfers in US dollars by Binance only affects international users of the platform and not Binance.US customers. Binance CEO Changpeng Zhao has stated that USD bank transfers are leveraged by only 0.01% of the company's monthly active users.
👉 How does this temporary suspension impact other methods of buying and selling crypto on Binance?
The temporary suspension of bank transfers in US dollars by Binance does not impact other methods of buying and selling crypto on the platform. All other methods, including the use of credit or debit cards and SWIFT transfers using other currencies, remain unaffected.
🤠 What is the impact of the temporary suspension on Tether USDT and USD Coin USDC stablecoins on Binance?
According to CNBC, citing Arkham Intelligence, there has been a small outflow of Tether USDT and USD Coin USDC stablecoins pegged to the dollar to other exchanges as a result of the temporary suspension of USD SWIFT transfers by Binance.
However, this outflow is reportedly tiny compared to Binance's $42.2 billion in crypto assets.
