Cryptocurrency exchange Binance.US has updated its terms of service, hinting that direct withdrawals in United States dollars are no longer supported on the platform.
Binance.US updated its terms of service on Oct. 16, modifying the section about the โBAM Fiat Wallet,โ referring to Binance.US services related to U.S. dollar custody.
In the updated terms, Binance.US wrote that users โmay convertโ their U.S. dollar holdings to stablecoins or other digital assets to withdraw the funds from their accounts.
Some cryptocurrency enthusiasts took to X (formerly Twitter) to confirm the terms of serviceโs change on Binance.US. โBinance seizes USD. Donโt worry you can buy Tethers printed out of thin air or shitcoins,โ one crypto observer wrote on X.
Binance US seizes USD.
Donโt worry you can buy Tethers printed out of thin air or shitcoins. pic.twitter.com/BPh7SY3qTM
โ Bitfinexโed ฮฮฑฯฯฮฌฮฝฮดฯฮฑ (@Bitfinexed) October 17, 2023
Similarly to previous terms of service updates, Binance.US stressed that digital assets are not eligible for insurance protection by the Federal Deposit Insurance Corporation (FDIC).
โIn the event we terminate our relationship with a USD custodian and we are unable to find another USD custodian, we will provide notice and time to withdraw your U.S. dollar deposits,โ Binance.US wrote in an update on May 5, 2023. The firm added:
โAny U.S. dollar deposits that are not withdrawn by the deadline provided in the notice will be converted to stablecoin digital assets and transferred to your digital assets account.โ
The latest updates to Binance.USโ terms of service notably differ from a version posted in May 2023. At the time, the page included now-removed information that BAM โ Binance.USโ operator โ is not a member of FDIC and is not a bank but has โworked with the USD custodiansโ to ensure U.S. dollar deposits are held by custodians in omnibus accounts at FDIC-insured banks.
Subject to BAMโs and the U.S. dollar custodianโs compliance, itโs BAMโs intention that the funds be eligible for FDIC insurance coverage limit at $250,000 per eligible individual, โwhich would only be applicable if a bank were to fail,โ the terms of use from May 2023 read, adding:
โIn the event the bank does fail [โฆ]it is possible that your account(s) with the bank and the fiat [โฆ] will be aggregated for purposes of determining your eligibility for FDIC deposit insurance. FDIC insurance does not protect against the failure of BAM or malfeasance by any BAM employee.โ
Binance.US did not immediately respond to Cointelegraphโs request for comment.
Related: Binance.US taps MoonPay as banking alternative to regain USD ramps
The news is another example of Binance.US struggling to maintain its fiat on-ramps and off-ramps as the exchange has halted some U.S. dollar operations over the past year.
In June 2023, Binance.US suspended U.S. dollar deposits and notified its customers of an incoming pause to fiat withdrawal channels. The firm subsequently said it resolved U.S. dollar withdrawal issues but warned it could be a temporary solution.
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