Binance suspends withdrawals of USDC stablecoins

The exchange’s customers currently have access to the withdrawal of BUSD and USDT stablecoins

13.12.2022 - 11:45

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What’s new? On December 13, crypto exchange Binance restricted the withdrawal of funds in USD Coin (USDC) stablecoins. This was announced by Changpeng Zhao, the platform’s head, on his Twitter account. He confirmed the increased demand for USDC and the need to interact with the counterparty in the United States. Binance customers are currently able to withdraw Binance USD (BUSD) and Tether (USDT) stablecoins. However, according to subscribers of the Telegram channel MarketTwits, the withdrawal of USDT to Ethereum has also been suspended.

#Binance is conducting a token swap involving $USDC. As a result, $USDC withdrawals are temporarily paused.$USDT & #BUSD withdrawals are available and unaffected. $USDC withdrawals will reopen once the token swap is completed. https://t.co/CxgCGBUJEA — Binance (@binance) December 13, 2022

What is the reason for the suspension? Zhao expects the situation to recover after banks open in a few hours. “These are 1:1 conversions, no margin or leverage involved,” he said. In the future, Binance will also try to establish more flexible swap channels, the exchange’s head added.

On November 22, Binance passed a Proof-of-Reserves verification and a verification of liabilities to users test called Proof-of-Liability. An audit by Mazars, an international accounting firm, found that the crypto exchange’s BTC reserves are collateralized by 101%.

On December 12, Binance representatives denied information in a Reuters article that US prosecutors could charge the exchange and its leadership with sanctions violations and money laundering. Binance also published a post on its blog listing the company’s achievements in the fight against cybercrime over the past year.

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