Cryptocurrency exchange Binance will stop accepting transfers in USD

The largest cryptocurrency exchange in the business, Binance, said on Monday that it would stop accepting deposits and withdrawals in dollars. The business gave no explanation for the move.

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As of February 8th, "We are temporarily suspending USD bank transfers," a representative for Binance informed Trade Algo  According to the company, "0.01% of our monthly active users leverage USD bank transfers," and "we are working diligently to restart service as quickly as possible. Affected consumers are being notified personally."

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The group's subsidiary Binance US, which is subject to FinCEN regulation by the Treasury Department, stated in a tweet that it is unaffected by the suspension. Thus, the change only affects foreign nationals. consumers who make dollar-based transfers to or from bank accounts

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Immediately after the announcement, there has been a substantial increase in withdrawals from Binance's crypto wallets, according to data from Arkham Intelligence, as millions of dollar-pegged stablecoins like Tether and USDC migrated to other exchanges or private wallets.

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According to Trade Algo data, Binance lost almost $172 million in U.S. dollars over the day. For a business that has crypto assets valued at $42.2 billion, that is a rather small sum of money.

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According to the representative, "We're still massively net-positive on net deposits." After a bullish market movement like the one we saw last week, "outflows always tick up when prices start to level out as some participants took profits." Bitcoin increased by more than 38% in January, its highest month since October 2021.

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The revelation had little impact on Binance's exchange token, BNB, which remained stable at about $328.