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Binance.US Halts USD Withdrawals, No Longer Holds USD: New ToS

Published 10/17/2023, 06:38 PM
Updated 10/17/2023, 06:45 PM
Binance.US Halts USD Withdrawals, No Longer Holds USD: New ToS
BUSD/USD
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  • 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.

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 Binance’s new terms state that U.S. dollar assets may be converted into stablecoins, and then withdrawn.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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