Binance Announces Temporary Halt on U.S. Bank Transfers Beginning Feb. 8
The move does not affect Binance.US customers, meaning that only 0.01% of active users will be impacted by the suspension.
Binance has announced that it will temporarily halt U.S. dollar deposits and withdrawals on its platform.
“From February 8th, we will temporarily suspend all USD bank transfers,” the company tweeted, revealing that “only a small proportion of our users will be impacted by this and we are working hard to restart the service as soon as possible.”
The reason for the suspension has not been specified, but the company indicated that the move applies only to non-U.S. customers who transfer money to or from bank accounts in dollars and that the suspension applies only to international Binance users, as Binance.US tweeted that “our customers will not be affected.” Also, all other methods of buying and selling crypto remain unaffected.
From February 8th, we will temporarily suspend all USD bank transfers.
— Binance (@binance) February 6, 2023
Only a small proportion of our users will be impacted by this and we are working hard to restart the service as soon as possible.
All other methods of buying and selling crypto remain unaffected.
Binance CEO Changpeng Zhao said in a separate tweet that “USD bank transfers are leveraged by only 0.01% of our monthly active users.”
It is worth noting that USD bank transfers are leveraged by only 0.01% of our monthly active users.
— CZ 🔶 Binance (@cz_binance) February 6, 2023
However, we appreciate that this is still a bad user experience and the team is working on quickly resolving this issue. https://t.co/heCfWIomAX
According to data from Arkham Intelligence, following the announcement of the suspension of U.S. dollar deposits and withdrawals, there was a significant increase in the outflow of funds from Binance's cryptocurrency wallets. The outflow was mainly in the form of dollar-pegged stablecoins such as Tether and USDC, which were transferred to other exchanges or individual wallets.
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