Binance.US Struggles to Retain Dollar Deposits: Latest Updates and Controversy Explained

2023-10-17 17:31:44

On October 16, Binance.US updated its terms of use. With special regard to the section called BAM Fiat Wallet. This section applies to Binance.US US dollar deposit services. In the updated terms, the US branch of the largest crypto exchange has already written that users may have to convert their US dollars to stablecoins or other digital assets first in order to withdraw the balance. Binance.US Struggles to Retain Dollar Deposits Not everyone was happy with the news. Some people wrote on X that Binance had “seized” the US dollar. But now you can buy all kinds of “shitcoins” instead. As in previous updates, Binance.US has emphasized that digital assets are not covered by the US Federal Deposit Insurance Corporation (FDIC). In May, the crypto exchange wrote that if their relationship with the dollar custodian ends and they do not find a new one, it will only be possible to withdraw USD from the platform until a specified deadline. However, the current terms of use are quite different from the May 2023 update. Back then, for example, it was mentioned in the BAM Fiat Wallets section that Binance.US is not a member of the FDIC and is not a bank. But it works with dollar custodians to ensure dollar deposits are deposited in FDIC-insured banks. The purpose of this was to guarantee the dollar deposits of individual persons up to 250,000 dollars in the event of a bank failure. The fact that these parts are now removed from the terms and conditions shows that Binance.US is still fighting hard to maintain the ability to deposit and withdraw dollars. Back in June 2023, the platform announced that it had suspended its US dollar deposits and for a while the dollar payouts as well. Then the latter was solved, but according to the stock exchange, the situation was only temporarily managed.
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