- Binance no longer holds USD, requiring BUSD conversion for withdrawals.
- FDIC insurance has been removed, affecting USD deposits.
- Concerns arise about BUSD’s registration as a security in response to the changes.
Earlier today, crypto trader Asher Hopp tweeted that Binance.US has upgraded its Terms of Services (ToS). The updated language is likely to alarm some users: Binance.US announced that it no longer holds USD, users who previously deposited USD can no longer withdraw it, and there is no longer any FDIC insurance.
ICYMI, Binance minutes ago updated their ToS:1) They don't have any USD
2) Users who deposited USD can no longer withdraw it
3) There is no more FDIC insurance
Now you can only "withdraw" "fiat" by sending BUSD (an unregistered security?).
CC: @coryklippsten @TYonClubhouse pic.twitter.com/rl0lLdtKsq
— Asher Hopp (@AsherHopp) October 17, 2023
According to Hopp This leaves users wishing to withdraw USD from Binance with the sole option “sending BUSD”. Binance’s new terms state that U.S. dollar assets may be converted into stablecoins, and then withdrawn. Hopp questioned the regulatory status of BUSD in the United States, suggesting that it …
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