Binance Crypto Exchange Suddenly Bans US Dollar Withdrawal

Binance

Binance crypto suddenly froze dollar withdrawals and deposits. As a result, transfers in the form of crypto assets from Binance to other crypto exchanges have skyrocketed.
Announcement of freezing withdrawals and deposits in United States dollars was announced by Binance on Monday (7/2/2023). The company led and founded by Zhao Chengpeng (CZ) did not state the reason for the suspension.

"We implemented a temporary suspension of bank transfers in USD since February 8,

Affected customers will be notified immediately. About 0.01% of our monthly active users use bank transfers in dollars. We are working hard so that this service can be active again.

This freeze does not apply to Binance US, which operates in the United States under the supervision of the United States Department of Finance. Therefore, the freeze only applies to customers who are not domiciled in the US and making dollar transfers.

Data from Arkham Intelligence shows that there has been a spike in outflow from Binance's crypto wallet in the form of stablecoins such as tether and USDC, to other crypto wallets.

According to Defillama, there are US$172 million worth of funds daily flowing out of Binance in US dollars. This amount is only a fraction of the USD 42.2 billion worth of crypto assets that Binance manages.

Binance's crypto token BNB, unaffected by the withdrawal freeze, is trading steady at US$328.