United States dollar deposits have been suspended, and as of June 13, fiat (USD) withdrawal channels will be shut down, according to a statement from Binance.US.
On June 9, Binance.US declared that the United States Securities and Exchange Commission (SEC) had used "extremely aggressive and intimidating tactics" against the company, forcing it to take action.
The company announced that it has suspended USD deposits in an effort to safeguard its clients and platform. In addition, Binance.US is "notifying customers that our banking partners are preparing to pause fiat (USD) withdrawal channels as early as June 13, 2023."
The business also said it intended to switch to a cryptocurrency-only exchange while keeping a 1:1 ratio for client funds.
The warning stated that future processing delays "may be the result of elevated volumes and weekend bank closures."
It confirmed that cryptocurrency trading, staking, deposits, and withdrawals are still fully functional.
Binance.US and its banking partners have encountered more difficulties as a result of the SEC's "ideological campaign against the American digital asset industry," the company claimed. These banking partners have shown a desire to cut off fiat access to the exchange.
“Irrespective of the baseless claims, and in light of the Commission’s increasingly aggressive tactics, our payment and banking partners have signaled their intent to pause USD fiat channels as early as June 13, 2023, leaning our ability to accept USD fiat deposits and process USD fiat withdrawals will be impacted,” the exchange wrote.
The company announced that USD deposits would be stopped as of June 9 and that USD trading pairs would be taken off the market the following week. Tether trading pairs, however, would still be supported.
Any USD that was still on the exchange could be turned into a stablecoin that could be withdrawn on-chain, according to the statement.
Binance.US delisted ten trading pairs from its platform. On June 8, US Binance.US delisted two BUSD and eight Bitcoin (BTC) pairings, indicating that OTC Trading Portal services had been suspended. Early in May, BTC traded at a premium on the American exchange.
On June 6, the SEC issued an urgent order to freeze Binance.US's assets. The company informed consumers that their assets were secure the next day and noted that deposits and withdrawals continued to work normally on the platform, which was still fully operating.