Binance.com recently announced a temporary suspension on all USD bank transfers. The development is expected to impact only a small portion of users.
The news was shared on the official Twitter channel of Binance. As per the tweets, every other method of trading crypto will remain active. Given the magnitude of the situation, many US-based users were worried about making US bank transfers on Binance.us.
However, this temporary suspense is for Binance.com and not for Binance.us. The platform was quick to clarify the situation, stating that Binance US will still support US bank transfers. As one of the best crypto exchanges in USA, Binance US covers a massive user base. Thus, the community greatly appreciated how Binance US clarified the concern instantly. Therefore if traders want, they can easily trade their cryptos on Binance.us.
As for the temporary restriction, Binance has specified that only 0.01% of their monthly users indulge in USD bank transfers. These customers were sent a direct notification regarding the suspension.
Binance also noted that such a limited scale of transactions based out of US bank transfers is alarming. It indicates a serious problem with Binance’s US banking framework. Some speculate that the issue might lie on Signature Bank’s end, Binance’s US-based banking partner.
Exchanges usually rely on partners to conduct money transfers between bank accounts and wallets. Signature Bank recently hinted at cutting back on blockchain deposits. According to the financial institution, it will only moderate crypto-based transactions bigger than 100K dollars.
The news naturally affected Binance’s US-based audience as well. Many users have speculated that the recent suspension has arisen from the same issue. Binance might be looking for an appropriate banking partner.
There is no official notice about the suspension’s duration, but it is expected to last a few weeks. Given Binance’s market position, losing even 0.01% of its user base is massive. Thus, the platform is performing everything in its power to restart the services.