Crypto exchange Binance will suspend U.S. dollar transfers

Binance, the world's largest crypto exchange, volition suspend U.S. dollar deposits and withdrawals, the institution said Monday, without providing a crushed for the decision.

"We are temporarily suspending USD slope transfers arsenic of February 8th," a Binance spokesperson told CNBC. "Affected customers are being notified directly." The institution said "0.01% of our monthly progressive users leverage USD slope transfers," and added that "we are moving hard to restart work arsenic soon arsenic possible."

Binance US, a portion of the institution that's regulated by the Treasury Department's Financial Crimes Enforcement Network (FinCEN), said successful a tweet that it's not impacted by the suspension. Thus, the determination applies lone to non-U.S. customers who transportation wealth to oregon from slope accounts successful dollars.

Data from Arkham Intelligence shows that pursuing the announcement, determination was a crisp spike successful outflows from Binance's crypto wallets, arsenic millions of dollar-pegged stablecoins similar Tether and USDC flowed to rival exchanges oregon idiosyncratic wallets.

Binance's nett U.S. dollar outflow was implicit $172 cardinal for the day, based connected information from DefiLlama. That represents a tiny magnitude of wealth for a institution that has $42.2 cardinal worthy of crypto assets, according to Arkham.

"We're inactive overwhelmingly net-positive connected nett deposits," the spokesperson said. "Outflows ever tick up erstwhile prices commencement to level disconnected pursuing a bullish marketplace plaything similar we saw past week arsenic immoderate users instrumentality profits." Bitcoin roseate much than 38% successful January, its best month since October 2021.

Binance's speech token, BNB, was mostly unaffected by the news, holding dependable astatine astir $328.

Binance's speech token, BNB, since Feb. 3, 2023.

In precocious January, Binance said U.S. banking spouse Signature Bank had accrued U.S. dollar transaction minimums to $100,000. At the time, Binance claimed that Signature had told the speech that the caller minimum applied to each crypto speech customers.

Regarding Monday's suspension, a Binance typical told CNBC successful an email that "Binance.US has its ain banking partners and does not person immoderate issues." The main Binance speech does not service U.S. users.

Binance said customers tin inactive usage different fiat currencies oregon outgo methods to acquisition crypto. For the tiny fig affected, "we'll person a caller spouse to denote for those users successful the adjacent mates weeks," the spokesperson said.

CNBC's Kate Rooney contributed to this report.