Binance Suspends US Dollar Deposits Amid Biden Crypto Crackdown

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Trading, deposits and withdrawals of other cryptocurrencies will remain operational on the exchange. He said he would become a crypto-only exchange.

He appeared to be urging customers to withdraw or exchange their US dollars before the freeze took effect. We encourage clients to take appropriate action with their USD, the exchange said.

The exchange insisted it would continue to maintain a one-to-one ratio between deposits and reserves. He warned that the exchange could be prone to downtime due to high volumes.

The offshore group created Binance.US, a US subsidiary, after its main exchange was banned in 2019.

Regulators have unleashed a sweeping crackdown on cryptocurrency exchanges after the implosion of FTX, the second-largest digital coin exchange, last year.

Binance’s warning came as Moodys, the credit rating agency, downgraded its rating of Coinbase from stable to negative.

Coinbase, which is valued at $12 billion ($9.6 billion) and listed in the United States, was also sued earlier this week by US regulators and accused of selling unregistered securities.

The ratings agency said the change reflects the uncertain extent of the impact the SEC fees will have on Coinbases’ business model and cash flows.

Nansen, the cryptocurrency analysis firm, said global exchange Binances saw around $1.9 billion in net outflows in the past seven days and $348 million in the past 24 hours.

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