{"id":175894,"date":"2023-10-17T19:45:01","date_gmt":"2023-10-17T14:15:01","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=175894"},"modified":"2023-10-17T19:45:01","modified_gmt":"2023-10-17T14:15:01","slug":"binance-us-asks-users-to-convert-usd-into-stablecoins-for-withdrawals-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/binance-us-asks-users-to-convert-usd-into-stablecoins-for-withdrawals-crypto-news\/","title":{"rendered":"Binance US asks users to convert USD into stablecoins for withdrawals – Crypto News"},"content":{"rendered":"
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Cryptocurrency exchange Binance.US has updated its terms of service, hinting that direct withdrawals in the U.S. dollar are no longer supported on the platform.<\/p>\n

Binance.US updated<\/a> its terms of service on Oct. 16, significantly modifying the section about the \u201cBAM Fiat Wallet,\u201d referring to Binance US services related to USD custody.<\/p>\n

In the updated terms, Binance.US wrote that users \u201cmay convert\u201d their USD funds to stablecoins or other digital assets in order to withdraw USD funds from their accounts.<\/p>\n

Some cryptocurrency enthusiasts took to X (formerly Twitter) to confirm the terms of service’s change on Binance.US. “Binance seizes USD. Don\u2019t worry you can buy Tethers printed out of thin air or shitcoins,” one crypto observer on X wrote.<\/p>\n

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Binance US seizes USD.<\/p>\n

Don\u2019t worry you can buy Tethers printed out of thin air or shitcoins. pic.twitter.com\/BPh7SY3qTM<\/a><\/p>\n

\u2014 Bitfinex’ed \u039a\u03b1\u03c3\u03c3\u03ac\u03bd\u03b4\u03c1\u03b1 (@Bitfinexed) October 17, 2023<\/a><\/p><\/blockquote>\n

Similarly to previous terms of service\u2019s updates, Binance.US stressed that digital assets are not eligible for insurance protections by the Federal Deposit Insurance Corporation (FDIC).<\/p>\n

\u201cIn the event we terminate our relationship with a USD custodian and we are unable to find another USD custodian, we will provide notice and time to withdraw your U.S. dollar deposits,\u201d Binance.US wrote in an update on May 5, 2023. The firm added:<\/p>\n

\u201cAny U.S. dollar deposits that are not withdrawn by the deadline provided in the notice will be converted to stablecoin digital assets and transferred to your digital assets account.\u201d<\/p><\/blockquote>\n

The latest updates of Binance.US\u2019 terms of service notably differ from a version posted in May 2023. At the time, the page included now-removed information that BAM \u2014 Binance.US operator \u2014 is not a member of FDIC and is not a bank, but has \u201cworked with the USD custodians\u201d to ensure U.S. dollar deposits are held by USD custodians in omnibus accounts at FDIC-insured banks.<\/p>\n

Subject to BAM\u2018s and the USD custodian\u2018s compliance, it\u2019s BAM\u2019s intention that the funds be eligible for FDIC insurance coverage limit at $250,000 per eligible individual, \u201cwhich would only be applicable if a bank were to fail,\u201d the terms of use from May 2023 read, adding:<\/p>\n

\u201cIn the event the bank does fail […]it is possible that your account(s) with the bank and the fiat […] will be aggregated for purposes of determining your eligibility for FDIC deposit insurance. FDIC insurance does not protect against the failure of BAM or malfeasance by any BAM employee.\u201d<\/p><\/blockquote>\n

Binance.US did not immediately respond to Cointelegraph\u2019s request for comment.<\/p>\n

Related: <\/em><\/strong>Binance.US taps MoonPay as banking alternative to regain USD ramps<\/em><\/strong><\/a><\/p>\n

The news brings yet another example of Binance.US struggling to maintain its fiat on ramps and off ramps as the exchange has halted some USD operations over the past year.<\/p>\n

In June 2023, Binance.US suspended USD deposits<\/a> and notified its customers of an incoming pause to fiat withdrawal channels. The firm subsequently said it resolved USD withdrawal issues but warned that it could be a temporary solution<\/a>.<\/p>\n

Magazine: <\/em><\/strong>The Truth Behind Cuba\u2019s Bitcoin Revolution: An on-the-ground report<\/em><\/strong><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Cryptocurrency exchange Binance.US has updated its terms of service, hinting that direct withdrawals in the U.S. dollar are no longer supported on the platform. Binance.US updated its terms of service on Oct. 16, significantly modifying the section about the \u201cBAM Fiat Wallet,\u201d referring to Binance US services related to USD custody. In the updated terms, […]<\/p>\n","protected":false},"author":2,"featured_media":175895,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-175894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/175894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=175894"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/175894\/revisions"}],"predecessor-version":[{"id":175897,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/175894\/revisions\/175897"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/175895"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=175894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=175894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=175894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}