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 <p class="is-style-lead">In an Oct. 16 update to Binance.US’s terms of service for the exchange, a clarification was made that digital assets do not qualify for FDIC insurance coverage.</p>
 <p>The update also specifies that users must convert U.S. dollars into stablecoins or other <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currencies before making withdrawals.</p>
 <h2 class="wp-block-heading" id="u-s-dollar-funds-to-stablecoin">U.S. dollar funds to stablecoin</h2>
 <p>As part of the update, users will note new additions under the section “BAM Fiat Wallet.”&nbsp;</p>
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   Binance.US Terms of Use | Source:
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   Binance.US Terms of Use | Source: Binance.US
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 <p>The exchange now states that all U.S. dollar funds associated with your BAM Fiat Wallet are not eligible for FDIC insurance protections. In the event a user wishes&nbsp; to withdraw U.S. dollar funds from an account, they will have to convert such U.S. dollar funds to stablecoin or other digital assets, which can subsequently be withdrawn.</p>
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 <h2 class="wp-block-heading" id="following-a-consumer-alert">Following a consumer alert</h2>
 <p>The update comes after the release of a consumer alert from the Federal Trade Commission (FTC) dated Oct. 12.</p>
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   <noscript><iframe title="FDIC insurance: Safeguarding your cash" width="1020" height="574" src="https://thebittimes.com/image/getimage/?url=https://www.youtube.com/embed/C_OabxeQSfM?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
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 <p>As part of the alert, the FTC reiterates that if a bank holds FDIC insurance, users’ <a rel="noopener noreferrer nofollow" title="deposits" href="https://thebittimes.com/tag/deposits.html">deposits</a> are safeguarded up to $250,000 if the bank were to fail. However, the articles make it clear that when it comes to funds deposited with a <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency-based financial services provider, they do not enjoy FDIC insurance or protection if the <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> company faces financial difficulties.</p>
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  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Binance.US unveils new token listing policy, with SUI under evaluation
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/binance-us-alters-fdic-coverage-for-crypto-deposits-tbt66748.html">https://thebittimes.com/binance-us-alters-fdic-coverage-for-crypto-deposits-tbt66748.html</a></p>

Binance US alters FDIC Coverage for crypto deposits

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