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Crypto Exchange Binance Announces Temporary USD Bank Transfers

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Binance, the largest crypto exchange, announced a pause on USD deposits and withdrawals from bank accounts starting Feb 8.

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The cause of the pause is not specified, but it will only affect a small portion of the user base.

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Other methods of buying and selling crypto such as credit cards, Apple Pay, Google Pay, and bank transfers with other fiat currencies will remain unaffected.

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Binance.US clients will not be affected.

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The collapse of FTX has made banks hesitant to partner with crypto firms.

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Binance CEO Changpeng Zhao tweeted that while some banks are withdrawing support for crypto, others are moving in.

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The pause on USD bank transfers is a "bad user experience," despite its minimal impact on customers.

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Binance's banking partner, Signature Bank, stopped processing fiat to crypto transactions less than $100,000 in January.

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The lender aims to decrease its exposure to crypto markets, cutting off as much as $10 billion in deposits from crypto clients.

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The move was in response to a statement from the Federal Deposit Insurance Corporation that crypto-sector banking is considered a high-risk activity.

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