In light of the recent civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Binance, the leading cryptocurrency exchange in terms of trading volume, the consequences are unfolding. Binance.US, the American division of the global exchange, has announced a temporary suspension of all fiat currency withdrawals, starting from as early as June 13, 2023.
The decision to halt fiat withdrawals is attributed to the actions of Binance.US's banking partners, who have expressed their intention to temporarily suspend USD fiat operations with the exchange. Taking customer and platform safety into consideration, Binance.US took to Twitter to inform its users about the suspension of USD deposits. They also notified customers that their banking partners are preparing to pause the fiat (USD) withdrawal channels by June 13, 2023. In response, the exchange urged its customers to take appropriate measures regarding their USD funds.
In response to the situation, Binance.US has made the decision to temporarily adopt an all-crypto model. Despite this transition, the exchange, which is under the management of BAM Trading, has assured its users that it maintains one-to-one reserves for all customers. They have also emphasized that all operations are currently functioning normally, despite the upcoming changes.
The exchange explained that any potential delays in processing withdrawals might be due to high trading volumes and weekend bank closures. However, they emphasized that trading, staking, as well as deposits and withdrawals in cryptocurrencies, are fully operational without any disruptions.
Apart from the suspension of USD deposits and withdrawals, Binance.US has announced that all USD trading pairs, such as BTC-USD, will be temporarily suspended in the following week. Additionally, the platform informed its users that any USD balances held after June 15 might be converted into stablecoins, which can then be withdrawn on-chain.
Binance.US has adopted an aggressive stance on social media in response to the SEC lawsuit, which the platform has characterized as containing "unjustified civil claims." They have been openly critical of the regulatory agency, expressing their belief that the SEC's tactics and approach to industry regulation are aggressive and misinformed. Binance.US has been vocal about its disagreement with the SEC's actions, taking a combative tone in its public statements.
