Binance.US Alters Withdrawal Process Amidst SEC Troubles: Customers Now Required to Convert to Digital Assets

Binance.US, one of the leading cryptocurrency exchanges, has updated its terms of use, leaving its American customers with a unique withdrawal dilemma.

As of Monday, users are no longer able to withdraw U.S. dollars directly from their Binance.US accounts.

Instead, they are now required to convert their U.S. dollar funds to stablecoins or other digital assets before making a withdrawal.

This decision follows Binance.US’s suspension of dollar deposits earlier in June. The exchange attributed this move to the “extremely aggressive and intimidating tactics” of the U.S. Securities and Exchange Commission (SEC), which had left their banking partners wary of engaging with the cryptocurrency industry.

The SEC’s legal action against Binance.US, its parent company Binance, and founder Changpeng “CZ” Zhao, accusing them of operating unregistered securities platforms, has created considerable uncertainty.

The SEC has also expressed concerns about Binance’s custody practices and willingness to cooperate in legal matters.

Binance.US customers were given a heads-up in the same announcement that their banking partners were set to halt dollar withdrawals as early as June 13.

To make matters more complex, Monday’s terms of use update revealed that U.S. dollar funds held on the platform were no longer protected by the Federal Deposit Insurance Corporation (FDIC).

Binance.US has yet to announce a resolution for its euro payments partner issue, leaving its future in limbo.

These developments underline the ever-evolving regulatory landscape in the crypto industry and its impact on both exchanges and their users.