The largest crypto exchange Binance announced that it is going to suspend bank transfers in U.S. dollars (USD) as of February 8. They are working on fixing the issues and restarting the services as soon as possible. Any other trading methods will go as usual and remain unaffected.
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It is not clear why the leading centralized crypto exchange Binance makes this move to suspend bank transfers of USD. It will have an impact on the on-ramp and off-ramp crypto. People can use debit cards, credit cards, or any other options to buy and sell cryptocurrency.
Binance US is not affected by this suspension. Only international Binance users will be affected by this decision. They have to use other methods to buy or sell crypto. Binance stated that 0.01% of monthly active users have to deal with this issue due to the suspension of bank transfers in USD.
Binance did not mention which banking partners cause this issue to make bank transfers in U.S Dollars (USD). Recently Binance banking partner Signature bank decided not to process SWIFT fiat transactions that are less than $100,000 and it is effective in February.
There should be a secure and good connection between the traditional financial system and the crypto ecosystem. People as well as big institutions use the traditional financial system to get into the crypto ecosystem. If there is a problem of flowing money from the existing system, it will make it difficult to adopt crypto faster.
Regulators play an important role. If they see crypto as an enemy and act accordingly, it will slow the process but there is no way to stop the adoption of cryptocurrency. Some countries realize the facts and position themselves to leverage the crypto and blockchain for the development of their countries.
Some countries like El Salvador took it further and made Bitcoin a legal tender. Crypto critics say Bitcoin is not recognized by any country. Here comes El Salvador made a record of becoming the first nation in the world where Bitcoin is the legal tender.
If you make a living on crypto and you are affected by the Binance suspension of bank transfers in USD, you can find alternatives to buy and sell crypto and get your funds into fiat currency.
Anything can happen at any time in crypto, so it is better to prepare for that. An emergency fund can help you deal with any emergency situation. You do not have to pause and stop what you are doing. You can use your emergency fund to keep going and in the meanwhile, find an alternative to the on-ramp and off-ramp crypto.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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Reference: 1.
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I think it's due to the lack of dollars. QE has trapped a lot of the dollars with the Fed and right now, the banks aren't making that many loans. This means that the supply of dollars out there is lower too.
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That can be one of the reasons. Hope they will fix the issue and restart the services.
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