Binance.US will no longer allow customers to withdraw U.S. dollars directly from the platform, and dollars held in wallets on the platform are no longer insured by the Federal Deposit Insurance Corporation (FDIC).
The changes came through a Terms of Use update that customers were informed about on Monday, according to an email viewed by several media outlets and posted by users on X.
The edited section relates to the BAM Fiat Wallets, or the Binance.US wallets that hold dollars.
“Your Accounts and digital assets are not eligible for FDIC insurance protections. In the event you wish to withdraw U.S. dollar funds from your Account, you may convert such U.S. dollar funds to stablecoin or other digital assets, which can subsequently be withdrawn,” according to the updated terms.
Binance.US announced earlier this year that it planned to become a crypto-only exchange with plans to gradually eliminate crypto-fiat trading pairs. In June, there was a disruption with USD withdrawal requests, which was subsequently resolved with the help of banking partners. However, Binance.US warned then that the banking partners would likely discontinue that service in the future.
Binance.US, Binance and founder Changpeng “CZ” Zhao were sued by the U.S. Securities and Exchange Commission (SEC) in June for allegedly offering unregistered securities to American customers. The regulator has also questioned the company’s custodial practices.
