Binance.US Halts Direct Dollar Withdrawals (2024)

FAQs

Binance.US Halts Direct Dollar Withdrawals? ›

The exchange is no longer allowing users to make direct withdrawals in US dollars as of this week. As stated in their revised terms of service, they will no longer let users withdraw USD without first converting it to stablecoins or another digital asset.

What does Binance.US being a crypto-to-crypto exchange mean? On June 13, 2023, Binance.US began its transition to a crypto-only exchange, which means we no longer accept USD deposits and withdrawals for the time being — until we are able to secure stable banking partners.

Occasionally, we may need to lock your account if you have made recent changes to it. For example, if you have reached out to our team to reset your two-factor authentication, or you have changed your password, we will temporarily disable your ability to withdraw.

Binance suspends its withdrawals when the wallets undergo periodical maintenance. In some cases,a database glitch or another error relating to the exchange may cause some withdrawal problems. This might then have the knock-on effect of withdrawals being suspended as these are fixed.

1. After signing in to your Binance.US account, navigate to your Wallet page from the menu bar at the top of your screen. 2. On the Wallet page, click Withdraw in the top right corner.

This came just one month after Binance paused all U.S. dollar deposits, withdrawals, and trades on Oct. 17, 2023, in response to the Securities and Exchange Commission (SEC) lawsuit filed against Binance.US on June 5, 2023.

Binance.US regulatory challenges

The SEC charged Binance founder Changpeng Zhao and Binance.US with securities law violations in 2023. The regulator alleged that Binance and Zhao secretly controlled Binance.US. Zhao was also sentenced to four months in prison in April 2024 for violating the Bank Secrecy Act.

Yes, you can use Binance in the US. But the American version of the platform (Binance.US) is quite limited compared to the international one. Also, Binance is entirely banned in several states, including New York, Texas, Louisiana, Hawaii, Idaho, and Vermont. For more details, check out this article.

No, you cannot transfer crypto directly from Binance to your bank account. Binance, like many other exchanges, requires you to first sell your crypto for a fiat currency (such as USD or EUR). After that, you can withdraw the fiat to your linked bank account.

Cryptocurrency exchanges or wallet providers may freeze assets as a precaution against unauthorized access attempts, suspicious activity or security breaches. In addition to safeguarding user funds, this also prevents possible losses due to security flaws.

Why is it so expensive to withdraw from Binance? ›

The reason for the high withdrawal fees on Binance is mainly due to the blockchain network fees associated with processing transactions. These fees can vary depending on the network congestion and the specific cryptocurrency being withdrawn.

User reports indicate no current problems at Binance.

The Securities and Exchange Commission reached a deal with Binance late Friday that would allow the world's largest cryptocurrency exchange to keep operating in the United States and safeguard customer assets as the company battles a government lawsuit.

Charges against Binance

The CFTC brought civil proceedings against Binance in March 2023 for failing to put in place an anti-money laundering program that would have identified and stopped dirty money transactions such as the financing of terrorism and illicit drug sales.

Here's a quick rundown of Binance withdrawal limits: Regular users: 8,000,000 BUSD. VIP 1: 8,000,000 BUSD.

There will be no option for cashing out in US currency. To withdraw dollars, users must first convert their funds to another digital asset or stablecoin. Binance US notified users of the update via email and provided detailed instructions for the new procedure.

United States (U.S.)

U.S. regulators have scrutinized Binance's subsidiary, Binance.US, over compliance issues with local laws, such as registration requirements and potential securities violations.

So, can you use the original Binance in the US? Yes, if you're using a VPN, you can set up and register for an account. Just keep in mind that American citizens are not allowed to use the crypto exchange. If you want to set up a Binance account, you must first verify your identity.