Binance, the world’s largest cryptocurrency exchange, announced on Monday that it would suspend US dollar deposits and withdrawals, but did not disclose the reasons for the decision.
A Binance spokesperson told CNBC, “As of February 8, we are temporarily suspending US dollar bank transfers. Affected customers will be notified directly.” 0.01% of our users are using USD bank transfers,” he said, adding, “We are working hard to resume service as soon as possible.”
Binance US, a division of companies regulated by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), said: Tweet Do not be affected by suspension. Therefore, the move only applies to non-U.S. customers sending money to and from bank accounts in dollars.
According to data from Arkham Intelligence, there was a sharp spike in outflows from Binance’s cryptocurrency wallets after the announcement. tether and USDC It flowed to rival exchanges and individual wallets.
According to data from DefiLlama, Binance’s daily net USD outflow exceeded $172 million. According to Arkham, this is a small amount for a company with $42.2 billion worth of crypto assets.
“It remains overwhelmingly positive in terms of net deposits,” the spokesperson said. “Outflows always increase when prices start to level off following a bullish market move, like last week when some users turned a profit.” Bitcoin rose more than 38% in January, its best month since October 2021.
Binance exchange token, BNBlargely unaffected by news, has stabilized at around $328.
Binance’s exchange token after February 3, 2023, BNB.
late January, binance said US Banking Partner signature bank We have increased the minimum amount for USD transactions to $100,000. At the time, Binance claimed that Signature told the exchange that the new minimum would apply to all customers of the cryptocurrency exchange.
Regarding Monday’s outage, a Binance representative told CNBC in an email, “Binance.US has its own banking partners, no problem.” His main Binance exchange does not serve US users.
According to Binance, customers will continue to be able to purchase crypto using other fiat currencies and payment methods. “We will have new partners to announce for these users in the coming weeks,” said a spokesperson for the small number of affected users.
CNBC’s Kate Rooney contributed to this report.