Coinbase.Following an update to the exchange’s conditions of usage, US users are no longer able to withdraw dollars directly from the platform.
“In the event that customers wish to withdraw U.S. dollar funds from their account, they may do so by converting U.S. dollar funds to stablecoin or other digital assets, which can subsequently be withdrawn,” the email stated.
The company announced the suspension of dollar deposits at the beginning of June, citing banking partners’ reluctance to interact with the cryptocurrency sector as a result of the U.S. Securities and Exchange Commission’s (SEC) “extremely aggressive and intimidating tactics” against the industry.
Binance.US alerted users in the same message that its banking partners were getting ready to stop accepting dollar withdrawals as early as June 13.
On June 5, the SEC filed a lawsuit against Changpeng “CZ” Zhao, the founder of Binance, and Binance.US, the company’s overseas division, for allegedly running unregistered securities platforms. Since then, the SEC has questioned the business’s custody policies and readiness to comply with court orders.
Additionally, Binance lost its partner for euro payments last month; a replacement has not yet been revealed. The amendment to the conditions of usage also included US dollar funds on Binance.The Federal Deposit protection Corporation’s (FDIC) deposit protection no longer covers US wallets.