Binance.US recently informed its customers that it had resolved U.S. dollar withdrawal issues after working with banking partners. However, the company warned that the relief might not last long, as they expect their banking partners to discontinue the service in the near future.
While this announcement comes as good news for users who have been experiencing withdrawal issues, the potential discontinuation of the service in the future highlights the ongoing challenges faced by crypto exchanges in dealing with traditional financial institutions. The suspension of dollar deposits on June 9th and the pause in fiat withdrawal channels suggest that banks are cautious about their relationships with crypto exchanges amid increased regulatory scrutiny.
Despite the uncertainty surrounding its banking support, Binance.US urged its customers who have encountered failed withdrawal attempts to resubmit their requests. Furthermore, the company encouraged users to “use, withdraw, or convert your USD to a stablecoin to continue crypto-to-crypto trading,” as it transitions to a crypto-only exchange.
Binance.US also announced the addition of more USDT trading pairs with ANKR, DAI, DASH, HBAR, ICX, IOTA, RVN, WAVES, XNO, XTZ, and ZIL on June 26. However, it stated that most “USD Advanced Trading pairs” would be removed from the platform on the same date. As a result, only BTC, ETH, ADA, BNB, LTC, MATIC, SOL, VET, USDC, and USDT will be tradable against the dollar.
The situation with Binance.US echoes the company’s problems with banking partners in Australia. In May, Bitcoin prices fell to a 20% discount on the Australian branch of Binance when local banking and payments partners suspended their services, causing a rush to sell and cash out.
The contrasting stances on Binance.US’s withdrawal issues showcase the ongoing uncertainty faced by crypto exchanges as they navigate evolving regulatory landscapes and traditional financial institutions. While users are likely relieved that USD withdrawal issues have been resolved for now, there is no telling how long this relief will last.
As the cryptocurrency landscape continues to develop, it’s essential for exchanges like Binance.US and traditional financial institutions to find common ground and establish mutually beneficial partnerships. Otherwise, the lack of clarity on future services and support could potentially hamper the growth of the cryptocurrency market and user adoption.
Source: Cointelegraph
