The company said Monday that it was not providing a reason for the decision, as it is the world's largest criptocurrency exchange, is temporarily suspending U.S. dollar deposits and withdrawals.
Affected customers are being notified by the fact that we are temporarily suspending USD bank transfers as of February 8th, a Binance spokeswoman said. The company said that 0.01% of our monthly active users use USD bank transfers and that they are working hard to restart service as soon as possible. The US division of Binance, Binance US, a unit of the company that is regulated by the Treasury Department's Financial Crimes Enforcement Network, said in a tweet that it is not affected by the suspension.
Is Binance the next shoe to drop?
This is the latest in a series of companies that freeze withdrawals for customers. BlockFi suspended withdrawals last year due to the fear of insolvency and liquidity crunch spread across the markets. Five days later, Genesis announced the suspension of all withdrawals and originations in its lending business. The affected unit, Genesis Global Capital, serves an institutional client base and has $2.8 billion in total active loans as of the end of the third quarter of 2022, according to the end of the third quarter of 2022.
In recent months, there has been a spike in the outflows from Binance's wallets as millions of stable coins such as tether andUSDC flowed to rival exchanges or individual cold wallets. According to data from DefiLlama, Binance's net U.S. dollar outflow was over $172 million for the day. According to Arkham, the outflow represents a little money for the company, which currently has $42.2 billion worth of assets.
The spokesperson said that net deposits are still overwhelmingly net-positive. Prices start to go up when prices start to level off after a bullish market swing like we saw last week, as some users take profits. The Cayman Islands-based Binance is the world's leading cryptanalym and cryptanalym platform with a financial product suite that includes the largest digital asset exchange by volume, founded in 2017 by Changpeng Zhao and Yi He. It provides a platform for trading various cryptocurrencies. The Binance platform is used by millions around the world and is dedicated to increasing the freedom of money for users, including trading and finance, education, data and research, social good, investment and incubation, decentralization and infrastructure solutions, and more.