Binance, the biggest cryptocurrency exchange in the world will cease U.S. dollar withdrawals and deposits, the company announced Monday without stating a reason.
CNBC has been informed by a Binance spokesperson that “we are temporarily suspending USD banking transfers as of February 8th.” “Affected customers have been notified directly,” the Binance spokesperson said to CNBC. He added that the company had stated that USD bank transfers were temporarily suspended as of February 8th.
Binance US is a company unit that’s under the control of the Treasury Department’s Financial Crimes Enforcement Network. It stated in a tweet that it was not affected by the suspension. This applies only to U.S. customers who have transferred money to or from dollar bank accounts.
Arkham Intelligence data showed that after the announcement, there was an astronomical spike in outflows into Binance’s crypto wallets. This was due to millions of dollar-pegged stablecoins, such as Tether and USDC Money, being transferred to rival exchanges or individual accounts.
According to data from DefiLlama, Binance’s net U.S. dollar outflow for that day was more than $172 million. Arkham reports that that is only a fraction of the $42.2 billion worth of crypto assets owned by Binance.
According to the spokesperson, “We are still overwhelmingly net positive on net deposits.” “Outflows are always higher when prices begin to level off following a bullish stock market swing such as the one we witnessed last week, which was caused by some users taking profit.” Bitcoin In January, it rose by 38%, the best month since October 2021.
Binance’s exchange coin, BNB. The news didn’t seem to have any impact on the stocks, with their current price at $328.
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