Binance, the world’s largest cryptocurrency exchange, said it’s temporarily suspending deposits and withdrawals of US dollars using bank accounts, and will work to restart the service soon.
The suspension will start Wednesday, according to a Binance
spokesperson. No specific reason was given for the suspension. Bank transfers
using other fiat currencies, such as euros, are unaffected, the representative
said.
“It’s worth noting that only 0.01% of our monthly active
users leverage USD bank transfers, but that we are working hard to restart
service as soon as possible,” the spokesperson said in an emailed statement.
Other methods of buying and selling crypto on Binance, such as via credit card,
Google Pay and Apple Pay, “remain unaffected.”
Binance US, a separate entity designed for US users, said
it’s not affected by the move.
Crypto companies have had difficulties finding banking
partners to facilitate the sending of money to buy and sell digital assets.
Following the collapse of FTX, banks have been warned by federal regulators of
the risks of doing business with crypto firms.
While some banks are “withdrawing support for crypto, other
banks are moving in,” Binance Chief Executive Officer Changpeng Zhao said on
Twitter in response to the Binance announcement. “Some setbacks were expected
from last year’s incidents.”
Last month, Binance said its banking partner Signature Bank
would handle user transactions only if they’re for more than $100,000 as the
lender decreases its exposure to digital-asset markets. The New York-based bank
said in December it intends to cut as much as $10 billion in deposits from
crypto clients.
A spokesperson for Signature said Monday that the bank can’t
comment on client-related matters.