Binance.US halts USD deposits following regulatory action

Binance.US has halted fiat dollar withdrawal channels, and its banking partners are getting ready to do the same by June 13.

Just days after U.S. regulators sued Binance and its CEO, Changpeng Zhao, the cryptocurrency exchange retaliated. The largest cryptocurrency exchange in the world tweeted that action was being taken as it "proactively steps" towards becoming a crypto-only exchange for the time being.

The exchange informed its clients in a notice that cryptocurrency trading, deposits, staking, and withdrawals would all continue to be fully functional.

The largest U.S. cryptocurrency platform, Coinbase, was sued by the Securities and Exchange Commission (SEC) a day after the SEC sued Binance and its founder, Zhao, on Monday.

Following the collapse of FTX in 2022, the developments signal a dramatic escalation of a crackdown on the crypto industry by U.S. regulators.

Earlier on Thursday, according to a U.S. SEC filing to a federal court that was made public, American financial regulators stated their support for a freeze on Binance's assets.

According to Matthew Dibb, COO of Singapore-based cryptocurrency platform Stack Funds, Binance.US is a much smaller company than their global group. He continued by saying that stopping withdrawals would undoubtedly cause a lot of worry and panic.

The SEC's attitude towards cryptocurrencies, according to a tweet from Binance.US, was very combative and intimidating, and it also caused problems for the exchange and its banking partners.

Dibb said that this was going to be a long battle and that it was not going to get sorted out in the next two or three months; it's most likely going to take a few years.