Binance.US has restored USD deposits and withdrawals after almost 18 months of restrictions. The company announced on February 19 that US customers can once again deposit and withdraw dollars via bank transfer (ACH).
Users can now link their bank accounts to deposit or withdraw USD, purchase crypto using bank transfers, and trade on USD pairs. The service will gradually become available to all eligible customers in the coming days.
Why did Binance.US Suspend USD Deposits?
As USD services resume, Binance.US customers can now link their US bank accounts to the Binance account. They can buy and sell crypto directly using bank transfers.
As of now, only 10 cryptocurrencies can be traded directly using USD. This includes Bitcoin, Steller, Solana, Ethereum, Dogecoin, Hedera, Shiba Inu, Cardano, Sui, and BNB.
Binance.US suspended its USD deposit and withdrawal services following a high-profile SEC lawsuit and mounting regulatory pressure.
In June 2023, the SEC sued Binance.US for allegedly operating as an unregistered securities exchange, which led its banking partners to halt USD transactions.
Faced with this environment and to protect its customers, the platform shifted to a crypto-only model for certain regions.
“Binance.US and the SEC filed a joint motion requesting a 60 day stay in the lawsuit. The Court approved the stay. We are hopeful that this stay will allow Acting Chair Uyeda and the newly formed crypto task force to productively engage with Binance.US and reach a swift resolution to our case,” the exchange wrote on February 14.
Although trading and crypto-related functions continued, users could no longer directly deposit or withdraw USD until new, compliant banking partners were secured.
However, today’s resumption of USD deposits is likely driven by the pro-crypto regulatory changes in the US. The exchange has been facing regulatory challenges in other regions. Yet, resuming its core services in the US could provide a significant boost.
Coinbase and Kraken currently remain the largest crypto exchanges in the US. The resumption of USD services can potentially help Binance.US regain its market share and potentially challenge Coinbase.
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