<p>The post <a rel="nofollow" href="https://coinpedia.org/news/binance-us-no-longer-fdic-insured-halts-usd-withdrawals/">Binance.US No Longer FDIC-Insured, Halts USD Withdrawals</a> appeared first on <a rel="nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>Binance.US has officially ceased allowing users to withdraw U.S. dollars directly from their accounts. This decision came to light when the platform updated its terms of use. Now, if users wish to withdraw U.S. dollar funds, they must first convert these funds to stablecoin or other digital assets, which can then be withdrawn.</p> 
<blockquote class="wp-block-quote"> 
 <p>The updated <a href="https://www.binance.us/terms-of-use">terms of use state</a>, “Digital Assets are not legal tender, are not backed by any government, and accounts and value balances are not subject to protections or insurance provided by the FDIC or the Securities Investor Protection Corporation (SIPC).”</p> 
</blockquote> 
<p>The loss of FDIC insurance isn’t the only challenge Binance.US is facing. The exchange has been under the regulatory microscope, particularly from the U.S. Securities and Exchange Commission. The SEC has raised concerns about Binance.US’s compliance with specific regulations, leading to increased scrutiny.</p> 
<h2 class="wp-block-heading" id="h-the-sec-s-stance-and-binance-us">The SEC’s Stance and Binance.US</h2> 
<p>The decision to halt direct USD withdrawals wasn’t made in isolation. In June, Binance.US had already suspended dollar deposits. This move was attributed to the U.S. Securities and Exchange Commission’s (SEC) assertive approach towards the crypto industry, which reportedly made banking partners hesitant to collaborate with the sector.</p> 
<p>Furthermore, the SEC initiated legal action against Binance.US, its international counterpart, Binance, and its founder, Changpeng “CZ” Zhao. The allegations revolved around operating unregistered securities platforms. The SEC’s inquiries also extended to the company’s custody practices and willingness to cooperate with legal requests.</p> 
<h3 class="wp-block-heading" id="implications-for-fdic-insurance">Implications for FDIC Insurance</h3> 
<p>Another significant update in Binance.US’s terms of use is the status of FDIC insurance for U.S. dollar deposits. <a href="https://twitter.com/BinanceUS/status/1666996908651323393">Previously</a>, these funds enjoyed protection under the Federal Deposit Insurance Corporation (FDIC). However, with the recent changes, U.S. dollar funds in Binance.US wallets are no longer covered by this insurance.</p>

Binance.US No Longer FDIC-Insured, Halts USD Withdrawals

Table of Contents

CoinPedia News

Other articles published on Oct 17, 2023

opBNB-based AI Platform MyShell Closes $5.6M Funding Round with HashKey Capital Involved

Fantom Foundation Exploit – How Hackers Stole Nearly $7M Right Under Their Noses

Linear Finance (LINA) Price Prediction 2024, 2025, 2030, 2040, and 2050

Crypto Investors Are Unprotected Under EU Rules Until 2024: ESMA

Decentralized Data: The New Frontier with Pocket Network's Dermot O’Riordan

Unlocking the WeRent Experience: A Step-by-Step Guide to Downloading and Browsing NFTs!

Join our free newsletter for daily crypto updates!