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Cryptocurrency exchange Binance.US has updated its terms of service, hinting that direct withdrawals in United States dollars are no longer supported on the platform.<\/p>\n
Binance.US updated<\/a> its terms of service on Oct. 16, modifying the section about the \u201cBAM Fiat Wallet,\u201d referring to Binance.US services related to U.S. dollar custody.<\/p>\n In the updated terms, Binance.US wrote that users \u201cmay convert\u201d their U.S. dollar holdings to stablecoins or other digital assets to withdraw the funds from their accounts.<\/p>\n Some cryptocurrency enthusiasts took to X (formerly Twitter) to confirm the terms of service\u2019s change on Binance.US. \u201cBinance seizes USD. Don\u2019t worry you can buy Tethers printed out of thin air or shitcoins,\u201d one crypto observer wrote on X.<\/p>\n Binance US seizes USD.<\/p>\n Don\u2019t worry you can buy Tethers printed out of thin air or shitcoins. pic.twitter.com\/BPh7SY3qTM<\/a><\/p>\n \u2014 Bitfinex’ed \u039a\u03b1\u03c3\u03c3\u03ac\u03bd\u03b4\u03c1\u03b1 (@Bitfinexed) October 17, 2023<\/a><\/p><\/blockquote>\n Similarly to previous terms of service updates, Binance.US stressed that digital assets are not eligible for insurance protection by the Federal Deposit Insurance Corporation (FDIC).<\/p>\n \u201cIn the event we terminate our relationship with a USD custodian and we are unable to find another USD custodian, we will provide notice and time to withdraw your U.S. dollar deposits,\u201d Binance.US wrote in an update on May 5, 2023. The firm added:<\/p>\n \u201cAny U.S. dollar deposits that are not withdrawn by the deadline provided in the notice will be converted to stablecoin digital assets and transferred to your digital assets account.\u201d<\/p><\/blockquote>\n The latest updates to Binance.US\u2019 terms of service notably differ from a version posted in May 2023. At the time, the page included now-removed information that BAM \u2014 Binance.US\u2019 operator \u2014 is not a member of FDIC and is not a bank but has \u201cworked with the USD custodians\u201d to ensure U.S. dollar deposits are held by custodians in omnibus accounts at FDIC-insured banks.<\/p>\n Subject to BAM\u2018s and the U.S. dollar custodian\u2018s compliance, it\u2019s BAM\u2019s intention that the funds be eligible for FDIC insurance coverage limit at $250,000 per eligible individual, \u201cwhich would only be applicable if a bank were to fail,\u201d the terms of use from May 2023 read, adding:<\/p>\n \u201cIn the event the bank does fail […]it is possible that your account(s) with the bank and the fiat […] will be aggregated for purposes of determining your eligibility for FDIC deposit insurance. FDIC insurance does not protect against the failure of BAM or malfeasance by any BAM employee.\u201d<\/p><\/blockquote>\n Binance.US did not immediately respond to Cointelegraph\u2019s request for comment.<\/p>\n Related: <\/em><\/strong>Binance.US taps MoonPay as banking alternative to regain USD ramps<\/em><\/strong><\/a><\/p>\n The news is another example of Binance.US struggling to maintain its fiat on-ramps and off-ramps as the exchange has halted some U.S. dollar operations over the past year.<\/p>\n In June 2023, Binance.US suspended U.S. dollar deposits<\/a> and notified its customers of an incoming pause to fiat withdrawal channels. The firm subsequently said it resolved U.S. dollar withdrawal issues but warned it could be a temporary solution<\/a>.<\/p>\n Collect this article as an NFT<\/a><\/em><\/strong> to preserve this moment in history and show your support for independent journalism in the crypto space.<\/em><\/em><\/p>\n Magazine: <\/em><\/strong>The Truth Behind Cuba\u2019s Bitcoin Revolution: An on-the-ground report<\/em><\/strong><\/a><\/p>\n<\/div>\n\n