Binance.US Adjusts Withdrawal Policies for USD Holdings

by Oct 18, 2023CryptoNews0 comments

Binance.US, the cryptocurrency exchange, has introduced changes to its terms of service, indicating that direct withdrawals in U.S. dollars are no longer facilitated on the platform. The amendment, implemented on October 16, specifically pertains to the “BAM Fiat Wallet,” which relates to Binance.US’s U.S. dollar custody services.

According to the updated terms, Binance.US users now have the option to “convert” their U.S. dollar holdings into stablecoins or other digital assets in order to withdraw funds from their accounts.

Users took to social media, such as X (formerly Twitter), to verify the altered terms of service on Binance.US. One crypto observer humorously noted, “Binance seizes USD. Don’t worry, you can buy Tethers printed out of thin air or other cryptocurrencies.”

In alignment with prior terms of service revisions, Binance.US reiterates that digital assets do not qualify for insurance protection by the Federal Deposit Insurance Corporation (FDIC). The exchange clarifies that, should they terminate their relationship with a USD custodian and fail to secure another, users will be provided notice and a withdrawal period for their U.S. dollar deposits. Any funds not withdrawn within the stipulated time frame will be converted into stablecoin digital assets and transferred to the user’s digital assets account.

These updated terms deviate notably from those posted in May 2023. At that time, Binance.US indicated that BAM, the operator of Binance.US, worked with USD custodians to ensure U.S. dollar deposits were held by custodians in omnibus accounts at FDIC-insured banks. BAM aspired for these funds to be eligible for FDIC insurance coverage limits of $250,000 per eligible individual, with such protection applying only in the event of a bank failure. The terms also specified that FDIC insurance wouldn’t cover failures by BAM or any of its employees.

See also  Ethereum NFT Market Revival: EtherRock and BAYC Lead Sales Amidst Surging Interest

Binance.US has not responded to Cointelegraph’s request for comment. This development reflects ongoing challenges faced by Binance.US regarding its fiat on-ramps and off-ramps, with the exchange having previously suspended some U.S. dollar operations in the past year.

source: cointelegraph

Recent News

Recent Posts

Disclaimer: The information provided on this website is for informational purposes only. We strive to ensure the accuracy and reliability of the content, but we make no representations or warranties of any kind, express or implied, regarding the completeness, accuracy, reliability, suitability, or availability of the information. The use of this website is solely at your own risk.
We do not endorse or promote any specific cryptocurrencies, projects, exchanges, or investments mentioned on this website. The inclusion of any external links does not imply endorsement or recommendation.
Please note that the cryptocurrency market is highly volatile and involves substantial risks. You should carefully consider your own financial situation and risk tolerance before engaging in any cryptocurrency-related activities.

Related Post


Submit a Comment

Your email address will not be published. Required fields are marked *