Cryptocurrency exchange Binance.US has updated its terms of service, suggesting that the platform no longer supports direct withdrawals in U.S. dollars.
Binance US renew On October 16, its terms of service were significantly modified with respect to the “BAM fiat currency wallet”, which refers to Binance US’s services related to U.S. dollar custody.
In the updated terms, Binance.US wrote that users “can convert their USD funds into stablecoins or other digital assets in order to withdraw USD funds from their accounts.
Several cryptocurrency enthusiasts took to X (formerly Twitter) to confirm the changes to Binance.US’s terms of service. “Binance grabbed the USD. Don’t worry, you can buy Tether or shitcoins printed out of thin air,” wrote one cryptocurrency observer on X.
Binance US seizes USD.
Don’t worry, you can buy Tether or spamcoins printed out of thin air. pic.twitter.com/BPh7SY3qTM
— Bitfinex’ed Cassandra (@Bitfinexed) October 17, 2023
Similar to previous Terms of Service updates, Binance.US emphasizes that digital assets are not eligible for insurance protection from the Federal Deposit Insurance Corporation (FDIC).
Binance.US wrote in an update on May 5, 2023: “If we terminate our relationship with the USD custodian and are unable to find another USD custodian, we will provide notification and provide a time for withdrawing your USD deposits. The company added:
“Any U.S. dollar deposits not withdrawn by the deadline specified in the notice will be converted into stablecoin digital assets and transferred to your digital asset account.”
The latest update to the Binance.US Terms of Service is significantly different from the version released in May 2023. At the time, the page contained information that BAM (the operator of Binance.US) was not a member of the FDIC and was not a member of the FDIC (now deleted). The bank, however, has “worked with the U.S. dollar custodian” to ensure that U.S. dollar deposits are held by the U.S. dollar custodian in an omnibus account at an FDIC-insured bank.
Subject to compliance by BAM and the USD Custodian, BAM intends to make these funds eligible for FDIC insurance up to a limit of $250,000 per qualified individual, “which would only apply in the event of a bank failure” starting in May 2023 The terms of use read, adding:
“If a bank does fail (…), your accounts and fiat currencies at the bank (…) may be aggregated to determine whether you qualify for FDIC deposit insurance. FDIC insurance does not protect against the failure of BAM or any BAM employee of malfeasance.”
Binance.US did not immediately respond to Cointelegraph’s request for comment.
related: Binance.US leverages MoonPay as banking alternative to revive USD growth
This news once again proves that Binance US has stopped some US dollar operations in the past year, making it difficult to maintain the entry and exit of its fiat currencies.
In June 2023, Binance.US suspended USD deposits and notified customers that fiat withdrawal channels were about to be suspended. The company later said it had resolved the issue with USD withdrawals, but warned this could be a temporary fix.
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