The major cryptocurrency exchange Binance will stop allowing bank account deposits and withdrawals of US dollars on Wednesday without giving a justification.
Other methods of purchasing and selling cryptocurrencies on Binance, such as using credit cards, Google Pay, and Apple Pay, remain untouched. Bank transfers using other fiat currencies are also unaffected.
They’re still massively net-positive on net deposits, the spokeswoman insisted. As some consumers take profits after a bullish market swing like the one, they saw last week, outflows always increase as prices begin to level off. In the meantime, Binance US, a division of Binance that is subject to regulation by the Financial Crimes Enforcement Network (FinCEN) of the Treasury Department, made it clear on Twitter that it is a distinct legal company from Binance and that its customers are unaffected by the ban.
Following the demise of cryptocurrency exchange FTX, an increasing number of institutions have been lowering their exposure to the cryptocurrency sector. Binance announced last month that starting this month, its financial partner Signature Bank will only accept transactions worth more than $100,000. The bank previously announced its intention to cut up to $10 billion in cryptocurrency clients’ accounts.
A recent joint statement by the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) cautioned financial companies about the risks associated with cryptocurrencies. Business models that are heavily focused on crypto-asset-related operations or have heavily concentrated exposures to the sector raise serious safety and soundness issues for the authorities.
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