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"Cryptocurrency exchange Binance.US, which was hit with a sudden lawsuit by the U.S. Securities and Exchange Commission (SEC) in June this year, announced shortly thereafter that its bank payment partners would suspend support for the exchange's USD deposit and withdrawal channels from June 13. As a result, it was forced to suspend USD deposit and withdrawal.
Although Binance.US had announced a new USD gateway through a third-party payment service provider, MoonPay, on August 23, the situation has continued to evolve. According to updated terms of use provided by Binance.US on October 17, users will no longer be able to withdraw USD directly from the platform. Additionally, the cryptocurrency held by users on the exchange will no longer be protected by deposit insurance provided by the Federal Deposit Insurance Corporation (FDIC).
Binance.US ceases USD withdrawals
In the updated terms of use, Binance.US explicitly states that users can no longer withdraw USD directly from the platform. Instead, if customers wish to withdraw USD funds from their account, they can convert the USD funds into stablecoins or other digital assets and then proceed with the withdrawal.
User funds no longer protected by the FDIC
Furthermore, Binance.US states that apart from users being unable to directly withdraw USD on their platform, the cryptocurrency held by users on the exchange will also no longer be protected by deposit insurance provided by the Federal Deposit Insurance Corporation (FDIC).
The FDIC, established in 1933 during the Great Depression, was created to protect American citizens from losing a certain amount of funds in the event of a bank failure. However, the updated terms of use by Binance.US now state: ""Your account and digital assets are not eligible for FDIC insurance protection.""
A previous statement by the FDIC may provide some context: ""Please note that your cryptocurrency deposits are not protected by the FDIC. In the event that something happens, the FDIC may not have a duty to step in and help you recover your money.""" |
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Post time 23-10-2023 12:01:25
