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Binance To Suspend US Dollar Bank Transfers
By Kapil Rajyaguru
Binance, world’s largest crypto exchange by trading volume, is temporarily suspending U.S. dollar bank transfers starting on Wednesday.
“We are temporarily suspending USD bank transfers as of February 8th,” a Binance spokesperson said, noting just 0.01% of monthly active users use USD bank transfers. “Affected customers are being notified directly.”
“In the interim, all other methods of buying and selling crypto remain unaffected, including bank transfer using one of the other fiat currencies supported by Binance including euros, buying and selling crypto via credit card, debit card, Google Pay and Apple Pay and via our Binance P2P marketplace,” the spokesperson added.
However, Binanace’s U.S. division, Binance.US, is not affected by the suspension, according to a tweet from Binance.US Customer Support. Hence, the move applies only to non-U.S. customers who transfer money to or from bank accounts in dollars.
Data from Arkham Intelligence shows that following the announcement, there was a sharp spike in outflows from Binance’s crypto wallets, as millions of dollar-pegged stablecoins such as Tether and USDC flowed to rival exchanges or individual wallets.
Binance’s net U.S. dollar outflow was over $172 million for the day, based on data from DefiLlama. That represents a tiny amount of money for a company that has $42.2 billion worth of crypto assets, according to Arkham.
It seems, Binance’s banking partner Signature Bank in January raises transaction minimums for dollar transfers.
Is it because of this move by Signature Bank Binance is suspending US Dollar transfers or the U.S. authorities are tightening its noose around Binance?
Only time will tell.
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