Binance.US, the United States-based cryptocurrency exchange, has recently announced the successful resolution of its U.S. dollar withdrawal issues after collaborating with its banking partners. However, the company has cautioned its customers that this relief may only be temporary, as it expects its banking partners to discontinue the service in the near future. Binance.US, a subsidiary of the global exchange Binance, had suspended dollar deposits and warned of a potential pause in fiat withdrawal channels earlier in June. Despite those concerns, the exchange’s banking partners have not yet implemented the anticipated restrictions.
Withdrawal Operations Back to Normal
In a customer update on June 22, Binance.US assured its users that its system is fully operational, and U.S. dollar withdrawal requests are expected to return to their usual processing time of five business days. The company encouraged customers who had experienced failed withdrawal attempts to resubmit their requests, emphasizing that the withdrawal service is currently functioning without issues. However, Binance.US advised users to be prepared for the potential discontinuation of the service in the future.
Transitioning to a Crypto-Only Exchange
As part of its strategy to adapt to potential changes in its banking partnerships, Binance.US is encouraging customers to consider utilizing stablecoins or converting their USD balances to stablecoins for continued crypto-to-crypto trading. Stablecoins, such as Tether (USDT), aim to maintain a stable value by pegging their price to a fiat currency, such as the U.S. dollar. Binance.US stated that it may convert any remaining USD balances held in customer accounts into Tether USDT at a later date.
Changes in Trading Pairs
In addition to the withdrawal-related updates, Binance.US also announced new trading pairs with Tether USDT and several cryptocurrencies, including ANKR, DAI, DASH, HBAR, ICX, IOTA, RVN, WAVES, XNO, XTZ, and ZIL. These trading pairs will be available for trading starting from June 26. However, the company stated that it would remove most “USD Advanced Trading pairs” from the platform on the same date. Among the 150 cryptocurrencies supported by Binance.US, only BTC, ETH, ADA, BNB, LTC, MATIC, SOL, VET, USDC, and USDT will remain tradable against the U.S. dollar.
Challenges Faced by Binance.US
This is not the first time Binance.US has encountered difficulties with banking partners. The Australian branch of Binance faced issues in May, as local banking and payment partners suspended their services temporarily, causing a temporary 20% discount on Bitcoin prices. These challenges highlight the ongoing struggles faced by cryptocurrency exchanges in maintaining consistent banking relationships due to regulatory uncertainties and concerns.
Binance.US has temporarily resolved its USD withdrawal issues, providing relief to its customers. However, the exchange has warned users about the potential discontinuation of the service in the near future, as anticipated by its banking partners. The company is encouraging users to consider stablecoins and preparing for a transition to a crypto-only exchange.
As the cryptocurrency industry continues to evolve, exchanges like Binance.US face regulatory and banking-related challenges that impact their operations and the services they can provide to their customers.