Binance plans to “temporarily” suspend US dollar bank transfers on February 8 and says that 0.01% of its monthly active users rely on USD bank transfers
not so good dealing with real money https://twitter.com/... Rock / @dataarocks : Binance got ditched by Signature Bank and they can't use Silvergate directly. Paxos operated partially through Silvergate, which is in liquidity crunch, this burned $BUSD. Real winner here is only $USDT where nobody can verify anything so it's likely safer by default. https://twitter.com/...
That pressure escalated from paused USD deposits and withdrawals in June to a later policy requiring users to convert dollar balances into stablecoins or other digital assets. The February interruption is an early point in that progression away from direct dollar rails.
First-order effects
The Binance users who rely on USD bank transfers lose that funding and withdrawal route during the stated suspension, despite representing only 0.01% of monthly active users.
Binance must steer affected customers toward available non-bank-transfer options while its USD banking channel is unavailable.
Second-order effects
Banking-partner disruptions raise the operational value of crypto-denominated balances on Binance, a direction later reflected in Binance.US’s restrictions on dollar withdrawals.
Exchanges with dependable fiat channels gain a practical differentiator for customers whose trading depends on moving dollars in and out of platforms.
Third-order effects
If bank access continues to fragment across crypto venues, dollar conversion becomes a separate, scarce layer of exchange infrastructure rather than a standard account feature.
The pattern points to a wider split between crypto trading liquidity and reliable fiat settlement, reinforcing the pressure on Binance USD’s exchange availability alongside banking constraints.
The trend: Crypto exchanges are becoming more dependent on a shrinking set of usable fiat-bank connections, pushing customers and platforms toward stablecoin-based settlement.
From February 8th, we will temporarily suspend all USD bank transfers. Only a small proportion of our users will be impacted by this and we are working hard to restart the service as soon as possible. All other methods of buying and selling crypto remain unaffected.
[DB] Binance to Suspend USD Bank Transfers Feb 8th: Spokesperson Suspension Expected to Last ‘A Couple Weeks’ Until New Banking Partner Is Established: Person Familiar
It is worth noting that USD bank transfers are leveraged by only 0.01% of our monthly active users. However, we appreciate that this is still a bad user experience and the team is working on quickly resolving this issue. https://twitter.com/...
NEW: CRYPTO BANK WHACK-A-MOLE. Binance cut off from US banking. CryptoCom nearly loses access to euros. How long before the crypto-conomy is isolated from the real world of finance? https://dirtybubblemedia.substack.com/ ...
Oh boy. But hey, nothing to worry here, right? CZ claims only 0.01% of @Binance's users use the USD withdrawal option. It honestly sounds unbelievable - but, of course, we have no way to check. Withdraw (whatever you can withdraw) from exchanges, #Dogecoin. https://twitter.com/..…
#Binance will suspend U.S. dollar withdrawals and deposits for international customers beginning Feb. 8, the company said. Millions of dollars worth of #crypto flowed out of Binance after announcement: company says it remains “net-positive.” https://www.cnbc.com/...
binance getting dropped by their banking partner feels like the canary in the coal mine i doubt systemic risk to binance, but i wouldn't be surprised if regulatory action is imminent
Binance got ditched by Signature Bank and they can't use Silvergate directly. Paxos operated partially through Silvergate, which is in liquidity crunch, this burned $BUSD. Real winner here is only $USDT where nobody can verify anything so it's likely safer by default. https://twi…