Cryptocurrency exchange Binance.US has updated its terms of service, suggesting that direct withdrawals in US dollars are no longer supported on the platform.
On October 16, Binance.US updated its terms of service, amending the section on “BAM Fiat Wallet,” addressing Binance.US services related to US dollar custody.
In the updated terms, Binance.US stated that users “may convert” their US dollar holdings into stablecoins or other digital assets to withdraw funds from their accounts.
Some crypto enthusiasts took to Twitter to confirm the changes to the terms of service on Binance.US. “Binance holding USD. No worries, you can buy Tether out of thin air or shitcoin,” one crypto observer wrote on Twitter.
Similar to previous terms of service updates, Binance.US emphasizes that digital assets are not eligible for protection by the Federal Deposit Insurance Corporation (FDIC).
“In the event we terminate our relationship with the USD custodian and we cannot locate another USD custodian, we will provide notice and a period to withdraw your USD deposits,” Binance.US wrote in an update on May 5, 2023. The exchange added:
“Any USD deposits not withdrawn before the deadline stated in the notice will be converted to stablecoin and transferred to your digital asset account.”