Buckle up, folks, because Binance, the world’s largest cryptocurrency exchange ranked by volume, has just announced some major news that’s gonna rise your eyebrows. The company has announced that it will be temporarily suspending US dollar deposits and withdrawals starting February 8th.
Now, hold on, this doesn’t affect all of Binance’s customers – only the non-US ones who transfer money to or from bank accounts in dollars.
But, wait for it, Binance US, the unit of the company that’s regulated by the Treasury Department’s Financial Crimes Enforcement Network, isn’t affected. So, if you’re a US-based customer, you’re in the clear!
A bit confusing isn’t it?
So, what’s the deal? Well, the news of the suspension caused concerns, and as a result, there was a sharp spike in outflows from Binance’s crypto wallets.
Millions of dollar-pegged stablecoins, such as Tether and USDC, flowed to rival exchanges or individual wallets.
And, let me tell you, the numbers were staggering – Binance’s net US dollar outflow was over $172 million for the day! That’s a tiny amount of money for a company that has $42.2 billion worth of crypto assets, according to Arkham.
But, you know what they say – when one door closes, another one opens. And Binance is already working hard to restart the US dollar transfer service as soon as possible.
A spokesperson for the company stated that “we’re still overwhelmingly net-positive on net deposits” and that “outflows always tick up when prices start to level off following a bullish market swing like we saw last week as some users take profits.”
So, there’s that! And for those affected by the suspension, don’t worry, you can still use other fiat currencies or payment methods to purchase crypto.
Binance even said they’ll have a new partner to announce for those users in the next couple of weeks.
Now, let me tell you something that not many newbie investors know about Binance and its BNB coin.
Binance actually has its own exchange token, BNB, which was largely unaffected by the news of the suspension.
It held steady at around $328, which is pretty impressive.
And, did you know that Binance uses 20% of its quarterly profits to buy back and burn BNB? This helps maintain the value of the token, making it a popular choice among crypto traders and investors.
The platform was originally based in China, but due to the Chinese government’s crackdown on cryptocurrency, Binance had to quickly find a new home.
And boy did they find a great one! In 2018, Binance moved its servers and headquarters to Malta, which has since become a hub for blockchain and cryptocurrency companies. This move allowed Binance to operate more freely and solidified its position as one of the largest and most popular cryptocurrency exchanges in the world.
Binance is also known for its strong emphasis on security and user experience, offering a wide range of features for both beginner and advanced traders. From its popular Binance Coin (BNB) to its innovative Launchpad platform for launching new cryptocurrencies, Binance is constantly pushing the boundaries of what is possible in the crypto space.
So next time someone mentions Binance, you can impress them with these little-known facts!
So, there you have it, folks! The latest update from Binance, the world’s largest cryptocurrency exchange. Despite the temporary suspension of US dollar transfers, the company is working to get the service back up and running as soon as possible.
And, in the meantime, customers can still use other fiat currencies or payment methods to purchase crypto. And don’t forget about Binance’s BNB coin, a valuable and popular choice among crypto traders and investors.