Binance.US, a cryptocurrency exchange, has made changes to its terms of service, indicating that it no longer supports direct USD withdrawals. The adjustments were implemented on October 16 and primarily affect the section regarding the "BAM fiat currency wallet," which pertains to Binance.US's services concerning the custody of U.S. dollars.
In the revised terms, Binance.US stated that users "can convert their U.S. dollar holdings into stablecoins or other digital assets to withdraw funds from their accounts." This change drew the attention of cryptocurrency enthusiasts, who expressed concerns about the altered withdrawal process.
The modifications emphasize that digital assets do not qualify for insurance protection from the Federal Deposit Insurance Corporation (FDIC). Binance.US has previously addressed the termination of relationships with USD custodians, highlighting that users would be provided with notice and time to withdraw their USD deposits, with any remaining deposits being converted into stablecoin digital assets.
Compared to the previous Terms of Service update in May 2023, the latest changes represent a significant shift. Previously, there were references to the FDIC and collaboration with a USD custodian to ensure insurance coverage for USD deposits held in an omnibus account at an FDIC-insured bank. However, the recent updates seem to imply a shift towards a "crypto-only exchange."
This development further underscores Binance.US's challenges in maintaining access to fiat currencies, as it had temporarily halted certain U.S. dollar operations over the past year, including both deposits and withdrawals. The exchange's stance seems to lean more towards digital assets and stablecoins.
