Binance.US no longer supports USD deposits and withdrawals, customer assets are not FDIC insured.

Binance and the U.S. Securities and Exchange Commission (SEC) lawsuit continues, following the lawsuit, Binance.US has been gradually delisting some trading pairs. In early June, it also announced the suspension of USD deposits and withdrawals, transitioning into a cryptocurrency-only service exchange. Binance.US updated its Terms of Use on Monday, stating that users cannot directly withdraw USD from the platform, and their assets are not protected by the FDIC.

Binance.US transforms into a pure "cryptocurrency" exchange! USD deposits have been suspended, and fiat withdrawals will stop on 6/13.

Binance.US No Longer Offering USD Withdrawals

Binance.US updated its terms of use on Monday, stating that users are no longer able to withdraw USD directly from the platform.

If customers wish to withdraw USD funds from their accounts, they can convert the USD funds to stablecoins or other digital assets before withdrawing.

In fact, reports have emerged that Binance has also suspended fiat deposits in the UK and the Eurozone. Although CEO CZ mentioned that alternative solutions will be implemented soon, it seems to be still pending.

Payment service provider Paysafe unilaterally suspended Euro deposits to Binance, Zhao Changpeng: Alternative solutions to be implemented soon

Is regulation becoming stricter? Following USD, Binance reportedly suspends GBP deposits and withdrawals

Funds in Wallets Not Protected by FDIC

The terms of use also state that USD funds in Binance.US wallets are no longer protected by the Federal Deposit Insurance Corporation (FDIC).

The Federal Deposit Insurance Corporation (FDIC) is an insurance company established by the U.S. federal government during the Great Depression to provide insurance for deposits held by insured banks and savings associations in the event of bank failure. Currently, the maximum insurance coverage for each depositor of a bank is $250,000.

There are two main requirements for coverage under the FDIC:

• The bank where the deposit is made must be a member of the FDIC, which does not apply to cryptocurrency exchanges.
• Only deposit-type products are covered, such as regular deposit accounts and money market deposit accounts. Stocks, bonds, and crypto assets are not covered under the protection.

Therefore, crypto assets are not originally within the FDIC's coverage! Cryptocurrency exchanges are not members of the FDIC, so their assets are not protected by the FDIC, unless they are deposited into a member bank of the FDIC. However, now that Binance.US no longer offers USD fiat services, customer assets are naturally not within the FDIC's coverage.