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Binance.US alters terms – direct USD withdrawals impacted

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Binance.US has made significant changes to its terms, preventing direct USD withdrawals and urging users to convert to digital assets.


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  • As per the updated ToS, users will no longer able to make direct USD withdrawals.
  • The cryptocurrency community did not take kindly to the news.

Binance.US has implemented a significant change to its terms of service, signaling the discontinuation of direct United States dollar (USD) withdrawals on its platform.

The adjustment occurred within the terms of service, particularly the section pertaining to the “BAM Fiat Wallet.” This section refers to services connected with the custody of U.S. dollars by Binance.US.

In the updated terms, Binance.US clearly stated that users “may convert” their USD holdings into stablecoins or other digital assets to facilitate the withdrawal of funds from their accounts. This change means that users are no longer able to make direct USD withdrawals.

This modification in terms did not go unnoticed in the cryptocurrency community. Concerned users took to social media, particularly X (formerly Twitter), to share their observations.

Some expressed their unease, highlighting the need to convert USD to stablecoins or other digital assets to access their funds.

What led to the decision?

It’s essential to note that Binance.US emphasized that digital assets are not eligible for insurance protection provided by the Federal Deposit Insurance Corporation (FDIC). This is similar to previous updates to its terms of service.

This important distinction underscores that users must be cautious and understand the risks associated with this new withdrawal process.

In a statement on 5 May 2023, Binance.US had already outlined its procedure for handling U.S. dollar deposits should the relationship with a USD custodian be terminated.

In such a scenario, the exchange would provide notice and a grace period for users to withdraw their USD deposits. Any remaining USD deposits not withdrawn by the specified deadline would be converted to stablecoin digital assets and transferred to users’ digital assets accounts.

Notable shift in terms of service

This change marks a notable shift in Binance.US’s terms of service compared to a version posted in May 2023. In the previous version, the exchange emphasized its collaboration with USD custodians and FDIC-insured banks.

This was done to ensure the safety of U.S. dollar deposits.

The terms at the time suggested that the funds could be eligible for FDIC insurance coverage up to $250,000 per eligible individual. The previous statement is contingent on a bank failure.

However, the recent modification to the terms signals a change in the approach to safeguarding user funds. The alteration effectively obliges users to convert their USD holdings into alternative digital assets for withdrawals.

However, this may not align with the preferences and expectations of some users.

Binance.US has faced challenges regarding its fiat on-ramps and off-ramps over the past year. For instance, in June 2023, the exchange suspended U.S. dollar deposits and warned customers of potential disruptions to fiat withdrawal services.

While it subsequently resolved some of these issues, it cautioned that these solutions might be temporary.


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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