Binance.US Dollar Withdrawals Discontinued Because It Is No Longer FDIC Insured

Users of Binance.US are faced with receding withdraw options due to rules imposed by the Federal Deposit Insurance Corporation (FDIC). In a now-deleted blog post from 2018, the US platform had initially assured users that their accounts were satisfactory unto the FDIC and would be approved for benefits typical of standard U.S. Dollar deposits, including pass-through FDIC insurance coverage with limits up to $250, 000 per account. This promise, however, has since been revoked as withdrawn options for US Dollars have been disabled.

The decision stems from increased oversight spearheaded by the United States Securities and Exchange Commission (SEC). In an effort to adjust toward regulatory pressure, Binance.US has encouraged customers to convert their US Dollar store to other cryptos or stablecoins, in addition to removing other services to protect their asset holders. This anecdote serves to enrich the high stakes landscape of cryptocurrency exchanges by illustrating the measures of marketplace security features and abrupt approach to provide public assurance.

Robert Wilson author
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