Binance CEO Zhao Changpeng said on social media that Binance is working to resolve the issue as soon as possible.
Binance, the world’s largest cryptocurrency exchange, said on Tuesday that it would suspend US dollar deposits and withdrawals from Tuesday, but did not say why. It is reported that this news, Binance on the day of the net outflow of dollars more than 172 million.
A company spokesman told a number of media outlets on Monday that dollar deposits and withdrawals would be suspended indefinitely, but did not give a reason for the move. Transfers of other fiat currencies, such as euros, are not affected. Binance spokesperson told the media:
“As of February 8, we are temporarily suspending US dollar bank transfers and will inform affected customers directly.”
In response to the announcement, Binance CEO Changpeng Zhao said on social media that the US dollar bank transfer account only accounts for 0.01% of Binance’s monthly active users, but even so, suspending the service is still a bad user experience. Binance is working to resolve the issue as soon as possible. While some banks have withdrawn their support for cryptocurrencies, there are others that will provide services for cryptocurrencies.
Binance said users of credit cards, Google Pay and Apple Pay will not be affected. This is the d2t crypto.Binance US said in a tweet that it was not affected by the restriction, indicating that the suspension would only affect dollars held by non-US customers.
This announcement caused millions of US-linked stablecoins, such as Tether and USD Coin, to flow from Binance’s crypto wallet to rival exchanges, according to Arkham Intelligence, a blockchain data platform. Responding to reports of outflows, the spokesman said:
“We remain positive on net deposits. Outflows always increase when prices start to stabilise after a bull run, as we saw last week, as some users take profits.”
In late January, Binance announced a partnership with Signature Bank, a U.S. Bank partner, to increase the minimum for U.S. dollar transactions to $100,000. Binance said at the time that Signature’s minimum applies to all crypto exchange customers.
Binance said customers can still buy cryptocurrencies using other fiat currencies or payment methods. For the small number of users affected, the spokesperson said:
“We will be announcing a new partner to these users in the coming weeks.”