Updates to Binance US's Dollar Withdrawal Policy
The Binance-affiliated cryptocurrency exchange in the United States, Binance US, revised its terms of service on Tuesday. BAM Trading Services Inc., a subsidiary of Binance, manages the trading platform for Binance in the US.
Users can access their USD cash through BAM-issued stored value wallets denominated in US dollars (BAM Fiat Wallets), according to the US-based cryptocurrency exchange. Binance US stressed:
If you want to take money out of your account that is in US dollars, you can convert it to stablecoin or another digital asset that can be taken out later.
After the U.S. Securities and Exchange Commission (SEC) requested a court order to freeze its assets, Binance US banned U.S. dollar deposits in the first few days of June. At the time, the exchange also issued a warning on its banking partners' plans to stop USD withdrawal routes as early as June 13. The exchange avoided asset freeze, but its percentage of the total volume of cryptocurrency traded in the US has dropped.
The restoration of U.S. dollar withdrawals was announced by Binance US on July 17. The cryptocurrency exchange still persisted in advising users to "use, withdraw, or convert their USD fiat balances to stablecoins to continue crypto-to-crypto trading on the platform." The company issued the following warning: "Any remaining USD balance in your account may be converted to USDT at a future date."
On June 5, the SEC filed a lawsuit against Binance, CEO Changpeng Zhao (CZ), and BAM Trading Services. 13 allegations were brought against them by the securities regulator, including running unlicensed broker-dealers, clearing agencies, and exchanges.
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