Binance - the world's largest digital currency exchange - said it would suspend deposits and withdrawals in US dollars, without providing a reason for the decision as quoted by CNBC.
CNBC quoted a Binance spokesman as saying: “We are temporarily suspending bank transfers in US dollars as of February 8.
He added: “Affected customers are notified directly, and 0.01% of our active users per month benefit from USD bank transfers, and we are working hard to restart the service as soon as possible.”
- Binance US – a unit of the stock exchange regulated by FinCEN of the US Treasury – said in a tweet that it was not affected by the comment.
- Thus, this move applies only to non-American customers who transfer money to and from dollar bank accounts.
Data from Arkham Intelligence shows that after the announcement, there was a sharp rise in outflows from Binance‘s cryptocurrency portfolios, with millions of dollar-linked stablecoins such as Tether and USDC flowing into rival exchanges or individual portfolios.
Net flow in US dollars to Binance exceeded more than $172 million per day, based on data from DefiLlama, and this represents a small amount of money for a stock exchange with $42.2 billion in cryptocurrency assets, according to Arkham.