Binance US, the American subsidiary of the world’s largest cryptocurrency exchange, announced it has resolved issues with U.S. dollar (USD) withdrawals and restored the service. However, the platform cautioned that withdrawal services are likely to be discontinued again in the near future, urging users to withdraw or convert their dollar balances.
Withdrawal Resumption and Ongoing Risks
Binance US stated it has worked with partners to resolve almost all delayed USD withdrawals. The platform advised users to resubmit previously failed withdrawal requests, noting that most will be completed within five business days. While the systems remain fully operational, the exchange expects its banking partners to discontinue the USD withdrawal service soon. The statement read: “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.”
SEC Litigation Context
The move comes after Binance US halted USD deposits and withdrawals earlier this month, asking customers to withdraw dollars by June 13. The exchange pointed out that the SEC’s legal action against it “has created challenges for the banks with whom we work.” The regulator sued the operators of the American exchange, BAM Trading Services and BAM Management US Holdings, as well as Binance founder Changpeng Zhao (CZ), alleging they have been selling unregistered securities and mishandling user funds. Under a deal with the SEC, Binance managed to avoid the freezing of its U.S. assets.
Transition to Crypto-Only Platform
Binance US also announced it is transitioning to a crypto-only trading platform. As part of the shift, any remaining USD balances in customer accounts may be converted to the dollar-pegged stablecoin USDT at a future date. The company revealed it will expand trading offerings with the stablecoin while removing most USD trading pairs on June 26. Thereafter, USD Advanced Trading pairs will only be available for BTC, ETH, ADA, BNB, LTC, MATIC, SOL, VET, USDC, and USDT. The exchange urged traders to execute or cancel any open orders with the dollar before these pairs are removed. Binance US sought to reassure customers that their assets are safe and secure. Recent data showed that its share of the U.S. crypto exchange market has shrunk to around 1.5% following the SEC litigation.