According to the company:
Our USD bank transfers have been temporarily suspended as of February 8th. Affected customers have been notified directly. 0.01% of our monthly active users use USD bank transfers and we are working hard to restore the service as soon as possible.
The Financial Crimes Enforcement Network under the Treasury Department confirmed via Twitter that Binance US is not affected by the suspension, which only affects non-US customers using dollars for transfers.
As a result of the announcement, Arkham Intelligence observed a significant increase in outflows from Binance’s crypto wallets with millions of dollar-pegged stablecoins moving to competitive exchanges and individual wallets.
Binance’s net outflow in US dollars for the day was over $172 million based on DefiLlama’s data. However, this amount may seem small considering Binance has $42.2 billion worth of crypto assets.
According to a spokesperson:
We are still overwhelmingly net-positive on net deposits. Outflows always rise after a bullish market swing, like we saw last week as some users take profits.
Binance’s exchange token, BNB, remained stable at approximately $328 following the news.
“Binance US has its own banking partners and has no problems,” a Binance representative told CNBC regarding Monday’s suspension.
US customers do not have access to Binance’s main exchange. Binance added that customers can still purchase crypto with other fiat currencies or payment methods.
A spokesperson said that a new partner would be announced in the next couple of weeks for the limited number of affected users.
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