Binance has announced that it plans to temporarily suspend USD deposits and withdrawals on the 8th of February following an alleged administrative problem.
According to WatcherGuru, a Binance spokesperson assured affected customers that they would be notified directly and that the suspension would only affect 0.01% of monthly active users.
Though the information seems routine, crypto users have expressed suspicion on social media platforms like Twitter. This is not surprising because, in the past few weeks, many seemingly solid and flourishing crypto companies have suffered an unexpected crashdown.
Earlier today, Binance announced the launch of Binance Tax, a tool that endears many users to the platform and ensures taxation is easily traceable and calculated.
Read Also: Binance launches amazing feature for calculating taxes on crypto transactions
As of the time of this writing, there is no concrete reason why USD withdrawals will be suspended or what the administrative issue might look like.
Besides, Binance has assured that “all other methods of buying and selling crypto remain unaffected,” including bank transfers using one of the other fiat currencies supported by Binance, according to the spokesperson.
This is a bit of the statement issued by Binance: “We are temporarily suspending USD bank transfers as of February 8th. Affected customers are being notified directly. All other methods of buying and selling crypto remain unaffected, including bank transfers using one of the other fiat currencies supported by Binance (including Euros), buying and selling crypto via credit card, debit card, Google Pay, Apple Pay, and via our Binance P2P marketplace.
Should Binance users worry?
Binance’s hastily announced intention to halt USD withdrawal and deposit is not the crypto company’s first such drastic step. Late last year, something very similar to this occurred. On the 12th of December, The exchange announced its suspension of withdrawals of UDSC stablecoins after being linked with FTX’s crash.
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This stirred many awful and negative responses from users, predicting that the largest cryptocurrency company was about to suffer the same fate as FTX. But in that particular scenario, CEO Changpeng Zhao elaborated in a tweet that, as the exchange saw heightened user withdrawals of USDC, the exchange decided to pause withdrawals as the banks that could honour them were closed.
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“These are 1:1 conversions; there is no margin or leverage involved.” We will also try to establish more fluid swap channels in the future. “In the meantime, feel free to withdraw any other stablecoin, such as BUSD, USDT, etc.,” Zhao added in a follow-up.
The explanation from Zhao quelled the fear and suspicion unfurling in users’ hearts. As regards this latest update, Users are implored to be calm and assured that nothing devastating and unfortunate would happen to their funds.
Users should expect an additional and comprehensive explanation from the Binance team as regards the administrative issue.
The company has shown itself as one of the best and most transparent crypto companies. Users should expect an official statement from Zhao in the coming days. But in the absence of that, there is no cause for alarm. The crypto exchange has zero records of any foul play or irregularities. Users can stay rest assured that there is nothing fishy playing out.
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