Binance.US has faced USD withdrawal challenges domestically and encountered banking partner issues in Australia, highlighting its vulnerability to similar obstacles across various jurisdictions.
Binance.US, the prominent cryptocurrency exchange in the United States, recently made a significant announcement regarding the resolution of its U.S. dollar withdrawal issues. In a bid to address the concerns of its customers, Binance.US revealed that it had successfully collaborated with its banking partners to rectify the problem. However, the exchange issued a word of caution, stating that the current relief might not be long-lasting.
Binance.US, which operates as an independent subsidiary of the larger Binance cryptocurrency exchange, assured its customers that its system was fully operational in a comprehensive update shared with its users on June 22. Consequently, it declared that U.S. dollar withdrawal requests were expected to return to their usual processing time of five business days, bringing a sense of normalcy to the platform.
The need for such reassurance arose when Binance.US temporarily suspended dollar deposits on June 9. In an official communication to its user base, the exchange had outlined its decision to halt fiat withdrawal channels due to an ongoing conflict with the Securities and Exchange Commission (SEC).
Furthermore, Binance had alerted customers that its banking partners were preparing to pause fiat withdrawal channels, potentially commencing on June 13. Surprisingly, this anticipated interruption did not transpire as predicted, offering a brief respite to users.
Encouraging its customers to capitalize on the current functional state of its systems, Binance.US advised those who had previously experienced failed withdrawal attempts to resubmit their requests.
However, the exchange issued a caveat, expressing uncertainty about the longevity of the existing relief. It conveyed its expectation that its banking partners would eventually discontinue the USD withdrawal service in the near future.
Amidst the evolving circumstances, Binance.US also recommended users to consider alternative measures to sustain their cryptocurrency trading activities. Specifically, the exchange proposed the utilization, withdrawal, or conversion of USD to stablecoins as a means of facilitating continued crypto-to-crypto trading.
Notably, any remaining USD balances held in customer accounts might be converted into Tether, a popular stablecoin, at a later date. This transition towards a crypto-only exchange emphasized Binance.US’s determination to adapt to the changing landscape of the industry.
In addition to the aforementioned developments, the announcement divulged information about the introduction of new USDT trading pairs. Effective from June 26, Binance.US planned to include ANKR, DAI, DASH, HBAR, ICX, IOTA, RVN, WAVES, XNO, XTZ, and ZIL in its repertoire of USDT trading pairs.
However, the update also mentioned the removal of most “USD Advanced Trading pairs” from the platform on the same date. Among the 150 cryptocurrencies supported by Binance.US, only BTC, ETH, ADA, BNB, LTC, MATIC, SOL, VET, USDC, and USDT would remain tradable against the dollar, signifying a significant shift in the exchange’s offerings.
While Binance.US has been grappling with USD withdrawal challenges within the United States, it has not been immune to similar obstacles in other jurisdictions. In Australia, for instance, the company encountered issues with its banking partners.
The Australian branch of Binance experienced a steep decline in Bitcoin prices, which plummeted by 20% due to the suspension of banking and payment services by local partners in May. The sudden disruption prompted a rush among users to sell their cryptocurrencies and convert them into fiat currency.
As Binance.US navigates through these complex circumstances both domestically and internationally, it remains committed to addressing the concerns of its customers and ensuring the continued provision of reliable services within the ever-evolving cryptocurrency landscape.