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The largest crypto exchange in the world is temporarily suspending U.S. dollar withdrawals and deposits starting on Feb. 8, the company confirmed to Axios.
Why it matters: Dollars are the global reserve currency.
Context: According to a Binance spokesperson, dollar bank transfers are used by 0.01% of its monthly active users.
- Impacted customers are getting direct notifications of the change.
Details: Transfers in other national currencies still work, as do credit, debit cards and of course making deposits and withdrawals using stablecoins.
Zoom out: In late January, Binance announced trouble in a number of countries with U.S. dollar transactions.
- U.S.-based Banks have been pulling back on their exposure to the crypto industry, including Signature and Metropolitan.
- Signature's new policy on only supporting high-value transactions has directly impacted the exchange.
Quick take: All signs right now suggest that this is a logistical issue, not a solvency issue.