Binance.US Solves USD Withdrawal Problems but Warns that Solution Is Only Temporary

Binance.US Solves USD Withdrawal Problems but Warns that Solution Is Only Temporary

UTC by Tolu Ajiboye · 3 min read
Binance.US Solves USD Withdrawal Problems but Warns that Solution Is Only Temporary
Photo: Unsplash

Binance.US withdrawals are now fully operational on the exchange, even as it warns users to convert all USD to USDT.

Binance.US has announced that users can now resume USD withdrawal, as it has solved the problem. The US arm of the world’s largest crypto agency also said that by working with banking partners, it has almost completely resolved all previously delayed withdrawal requests for USD. However, the exchange warns that this resolution may not be permanent.

In an official announcement, Binance.US noted that its systems are fully operational and that users with failed requests can begin to resubmit. The exchange then assured that all requests would be successful within the usual maximum time frame of five business days. Nonetheless, Binance.US advises users to quickly switch to stablecoins:

“While USD withdrawal remains fully operational on the platform today, we expect our banking partners to discontinue that service in the near future. While we continue to pursue new partners to re-establish USD deposits and withdrawals, we encourage users to use, withdraw, or convert their USD fiat balances to stablecoins to continue crypto-to-crypto trading on the platform.”

Binance Suspended USD Withdrawals after SEC Lawsuit

Earlier in the month, Binance.US suspended USD deposits, noting at the time that banking partners were also preparing to suspend withdrawals. The move came shortly after the United States Securities and Exchange Commission (SECsued Binance for violating securities laws, commingling investor funds, misleading customers, and allowing “high-value US customers” to trade outside Binance.US. The company’s US arm was launched as an independent company designed to follow US securities and trading laws.

Binance.US has said repeatedly that it intends to transition to a crypto-only exchange. The Binance announcement warns that the exchange will automatically convert all USD balances to USDT when its banking partners eventually suspend USD withdrawals.

According to Binance.US, users will only enjoy USD support for a handful of assets, including BTC, BNB, ETH, LTC, ADA, SOL, MATIC, USDC, and VET. On the other hand, all 150+ assets on the exchange support trading with USDT.

Issues in Australia

Binance has also had similar issues with fiat deposits and withdrawals. On June 1, Binance Australia announced that support for the Australian Dollar (AUD) would no longer be available. For continued access, all users would have to convert their AUD to USDT. At the time, Binance announced that it was “working hard to find an alternative provider” to continue normal services.

In April, the Australian Securities and Investments Commission (ASIC) revoked a derivatives license Binance held through Oztures Trading Pty Ltd, a local subsidiary. Interestingly, the ASIC noted in a press release that Binance requested the revocation.

Earlier in the year, the ASIC had announced an investigation into Binance and its activities in Australia. According to the ASIC, the investigation was necessary after Binance wrongfully closed some derivatives accounts causing several affected users to complain publicly. Binance admitted the error, confirming that the closures were based on the wrongful “classification of retail clients and wholesale clients”. Nonetheless, Binance CEO Changpeng Zhao assured all affected users of full compensation.

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