Reports suggest that the suspension will likely last for a few weeks.
Binance is planning to suspend US dollar (USD) deposits and withdrawals on its platform, according to Twitter-based prominent finance media outlet Tier10k. The notable media account disclosed that the suspension is expected to last for some weeks, citing people familiar with the matter.
“[DB] Binance to Suspend USD Bank Transfers Feb 8th: Spokesperson.
Suspension Expected to Last ‘A Couple Weeks’ Until New Banking Partner Is Established: Person Familiar,” the handle revealed in a tweet today, sharing a snapshot of a letter from the Binance team.
[DB] Binance to Suspend USD Bank Transfers Feb 8th: Spokesperson
Suspension Expected to Last 'A Couple Weeks' Until New Banking Partner Is Established: Person Familiar
— db (@tier10k) February 6, 2023
The letter discloses that the suspension will occur on February 8 at 22:00 hours (UTC) after which deposits into Binance USD accounts will be automatically rejected and the USD withdrawal feature on the platform will be disabled temporarily. Notwithstanding, it also reveals that other services will be unaffected and customers’ balances remain intact.
Moreover, the letter assures that the suspension is only temporary, as the team is working to resolve the issues. While the snapshot does not explicitly disclose the reason behind the suspension, Tier10k’s report suggests that it has to do with issues with one of Binance’s banking partners.
The development comes up shortly after Binance revealed last month that one of its fiat banking partners, Signature Bank, will stop processing transactions under $100,000 for retail customers by February 1.