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 “BAM Fiat Wallet,” referring to Binance.US services related to U.S. dollar custody.
In the updated terms, Binance.US wrote that users “may convert” 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 service’s change on Binance.US. “Binance seizes USD. Don’t worry you can buy Tethers printed out of thin air or shitcoins,” one crypto observer wrote on X.
Binance US seizes USD.
Don’t worry you can buy Tethers printed out of thin air or shitcoins. pic.twitter.com/BPh7SY3qTM
— Bitfinex’ed Κασσάνδρα (@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).
“In 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,” Binance.US wrote in an update on May 5, 2023. The firm added:
“Any U.S. dollar deposits that are not withdrawn by the deadline provided in the notice will be converted to stablecoin digital assets and transferred to your digital assets account.”
The latest updates to Binance.US’ terms of service notably differ from a version posted in May 2023. At the time, the page included now-removed information that BAM — Binance.US’ operator — is not a member of FDIC and is not a bank but has “worked with the USD custodians” to ensure U.S. dollar deposits are held by custodians in omnibus accounts at FDIC-insured banks.
Subject to BAM‘s and the U.S. dollar custodian‘s compliance, it’s BAM’s intention that the funds be eligible for FDIC insurance coverage limit at $250,000 per eligible individual,…