Binance suspends US dollar transactions outside the United States - users withdraw $172m in one day

Customers of cryptocurrency exchange Binance will no longer be able to make transfers in US dollars. This applies only to users outside the US.

Here's What We Know

The world's largest cryptocurrency exchange said that all US dollar deposit/withdrawal transactions will be suspended from 8 February 2023. The US division of Binance US said that no changes to operations are expected.

Binance did not elaborate on the reasons behind the decision, but promised to do its best to resume the service as soon as possible. The company is sending out notifications to all of its customers who will be affected by the change.

Since then, users have started withdrawing funds from their wallets en masse and selling digital currencies whose exchange rate is pegged to the US dollar. In particular, USDC and Tether. According to DefiLlama, $172 million in cryptocurrency was withdrawn in 24 hours.

Source: CNBC