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Banks to cut off Binance from US banking system as crypto giant suspends US dollar deposits amid SEC crackdown
- The US arm of Binance says it is pausing US dollar deposits, while continuing to provide crypto deposit services
- US financial regulators say they support a freeze on the assets of Binance, the world’s largest cryptocurrency exchange
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Cryptocurrency exchange Binance.US said on Thursday it is suspending US dollar deposits and that its banking partners are preparing to pause fiat dollar withdrawal channels as early as June 13, just days after US regulators sued Binance and its CEO Zhao Changpeng.
The US arm of the world’s largest crypto exchange said in a tweet at 10:33pm EDT (0233 GMT) on Thursday that the move comes as it is taking “proactive steps” in its transition to a crypto-only exchange for the time being.
Trading, staking, deposits and withdrawals in crypto would remain fully operational, the exchange said in a notice to its customers.
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On Monday, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its founder Zhao, and subsequently sued Coinbase, the largest US cryptocurrency platform, a day later.
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What are cryptocurrencies?
What are cryptocurrencies?
The developments mark a dramatic escalation of a crackdown on the industry by US regulators, following the implosion of FTX last year.
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