Binance.US Restores USD Deposits and Withdrawals After 18 Months Amid Regulatory Challenges
Cryptocurrency exchange Binance.US has made a significant move by lifting the restrictions on USD deposits and withdrawals that were in place for nearly 18 months. In an announcement on February 19, the company shared the news that its US customers can once again securely deposit and withdraw dollars via bank transfer (ACH).
The restoration of USD services means that users can now easily link their bank accounts to their Binance.US accounts to carry out transactions with convenience. This includes depositing or withdrawing USD, purchasing cryptocurrencies through bank transfers, and engaging in trading activities on USD pairs. The service will progressively become accessible to all eligible customers over the next few days.
The suspension of USD deposits and withdrawals by Binance.US was necessitated by a combination of factors, including a prominent legal battle with the US Securities and Exchange Commission (SEC) and escalating regulatory pressures. The SEC had initially sued Binance.US in June 2023 on allegations of operating as an unregistered securities exchange, prompting the platform's banking partners to halt USD transactions.
To safeguard its users amidst this challenging landscape, Binance.US transitioned to a crypto-only model for specific regions. However, recent developments have seen a positive turn, with the exchange and the SEC jointly requesting a 60-day stay in the lawsuit. This hiatus aims to facilitate constructive engagement between Binance.US and the regulatory authorities for a prompt resolution.
With the resumption of USD services, users can once again seamlessly transact with 10 major cryptocurrencies directly using USD. These include popular options such as Bitcoin, Ethereum, Cardano, and more. The move to restore USD capabilities aligns with the favorable regulatory shift towards cryptocurrencies in the US regulatory environment. By revitalizing its core services in the US, Binance.US aims to not only retain but potentially expand its market presence, challenging established platforms like Coinbase and Kraken.