Binance.US, the popular cryptocurrency exchange, has made significant changes to its services following a consultation with the Federal Deposit Insurance Corporation (FDIC). The exchange has decided to withdraw its offering of Federal Deposit Insurance and has also imposed new rules for US dollar (USD) withdrawals.
Binance.US Drops FDIC Insurance
Binance.US has rescinded its offering of Federal Deposit Insurance after consultation with the FDIC. In an email to clients, the exchange confirmed the update to its “deposit language insurance” terms. This means that customer deposits will no longer be eligible for FDIC insurance, unlike the previous terms which qualified for a maximum coverage of $250,000.
New Withdrawal Rules
Along with the removal of FDIC insurance, Binance.US has also implemented new rules for USD withdrawals. According to the revised terms of service, USD withdrawals must now be converted to stablecoins or other cryptocurrencies before being processed. This means that customers are no longer able to withdraw fiat currency directly.
Accept or Leave: Binance.US to Customers
The new terms and conditions will go into effect immediately, and by continuing to trade on Binance.US, customers are considered to have accepted these changes. However, customers who do not agree with the new terms have the option to close their accounts, provided they are in good standing.
Community Reactions
Community reactions to the changes have been mixed. Some individuals, like SpillnCryptoTea, view the removal of dollar withdrawals as a strategy to reduce dependence on the US dollar. On the other hand, some have raised concerns that this move pushes users towards other stablecoins with questionable reputations. Binance’s own stablecoin, BUSD, was recently labeled a security under US law, while Tether, the largest stablecoin globally, has faced regulatory scrutiny.
Impact on Binance.US
Binance.US has experienced a significant decline in market share since facing regulatory challenges in the United States. The exchange’s share of US trading volumes plummeted to less than 1% after the US Securities and Exchange Commission (SEC) accused Binance.US of lacking sufficient measures to prevent wash trading. While Binance.US successfully contested the SEC’s attempt to freeze customer assets, its reputation was negatively affected, resulting in a decline in trading volumes.
The exchange also faced obstacles on the global front as the US Commodity Futures Trading Commission (CFTC) accused its global affiliate, Binance, of allowing US market makers to access its derivatives trading desk. This move contributed to a decrease in spot and derivative volumes on the global exchange, aligning with the overall decline in exchange trading activity.
Frequently Asked Questions
1. Why has Binance.US removed its FDIC insurance coverage?
Binance.US has decided to rescind its offering of FDIC insurance following a consultation with the FDIC. The details of the decision have not been disclosed.
2. Can I still withdraw USD directly from Binance.US?
No, Binance.US has implemented new rules that require USD withdrawals to first be converted to stablecoins or other cryptocurrencies. Direct USD withdrawals are no longer possible.
3. What are the alternative options for withdrawing funds from Binance.US?
Customers can now withdraw funds by converting USD to stablecoins or other cryptocurrencies supported by Binance.US. These can then be transferred to external wallets or exchanged on other platforms.
4. Will Binance.US reconsider its decision in the future?
It is unclear if Binance.US plans to reconsider its decision regarding FDIC insurance and direct USD withdrawals. Customers are advised to stay updated on any further announcements or changes in the exchange’s services.
For more information about Binance.US and its services, visit [Binance.US](https://visbanking.com/). If you have any specific inquiries or require assistance, you can reach out to [Binance.US support](https://visbanking.com/contact/) for further assistance.
