- Binance.US, a popular cryptocurrency exchange, has updated its terms of service, no longer allowing direct USD withdrawals on the platform.
- Users are now required to convert their USD holdings into stablecoins or other digital assets before withdrawing from their Binance.US accounts.
- The change in terms of service has sparked discussions and concerns among cryptocurrency enthusiasts regarding transparency and the availability of fiat on-ramps and off-ramps.
Binance.US, a popular cryptocurrency exchange, has made changes to its terms of service, indicating that direct withdrawals in United States dollars (USD) are no longer supported on the platform. Users are now required to convert their USD holdings into stablecoins or other digital assets for withdrawal purposes. This development has sparked discussions among cryptocurrency enthusiasts.
Changes in Terms of Service
Binance.US recently updated its terms of service, specifically the section related to the “BAM Fiat Wallet,” which pertains to USD custody on the platform. The revised terms state that users have the option to convert their USD funds into stablecoins or other digital assets before withdrawing from their accounts.
User Reactions and Concerns
Some cryptocurrency enthusiasts took to social media to discuss and confirm the changes in Binance.US‘ terms of service. One observer expressed concerns about the inability to directly withdraw USD, highlighting the option to purchase stablecoins or “shitcoins” instead.
Insurance Protection and Deadline
It is important to note that digital assets held on Binance.US are not eligible for insurance protection from the Federal Deposit Insurance Corporation (FDIC). The terms of service emphasize that if Binance.US terminates its relationship with a USD custodian, users will be given notice and a deadline to withdraw their USD deposits. Any remaining funds after the deadline will be converted to stablecoin digital assets and transferred to the user’s digital assets account.
Contrasting Updates and Binance.US’ Fiat On-Ramp Challenges
The recent updates to Binance.US’ terms of service differ from previous versions. An earlier version mentioned the collaboration with USD custodians to ensure funds were held in omnibus accounts at FDIC-insured banks. However, it is unclear why this information has been removed.
This change in withdrawal options adds to Binance.US’ struggles in maintaining fiat on-ramps and off-ramps, as the exchange has previously suspended USD deposits and experienced issues with fiat withdrawal channels.
Conclusion
Binance.US’ decision to halt direct USD withdrawals and require the conversion of funds into stablecoins or other digital assets has caused concern among users. The changes in the terms of service highlight the need for greater clarity and transparency regarding the platform’s fiat operations. Crypto enthusiasts and users are closely monitoring the developments as Binance.US continues to navigate these challenges.
