In a formal tweet, Binance, a cryptocurrency exchange platform, said on Monday that it would stop accepting US dollar bank transfers as of February 8. The decision’s rationale is not expressly stated in the information currently provided by Binance.
What is more crucial to understand?
A Binance representative announced, “We are temporarily stopping USD bank transactions as of February 8,” pointing out that only 0.01% of monthly active users use USD bank transfers. The business stated that “affected customers would be directly notified.”
The use of bank transfers using one of the other fiat currencies accepted by Binance, such as euros, as well as the use of credit cards, debit cards, Google Pay, Apple Pay, and our P2P marketplace to purchase and sell cryptocurrency are all still valid options during this time.
The company’s subsidiary Binance US, which is subject to regulation by the Financial Crimes Enforcement Network of the Treasury Department, stated in a tweet that it is unaffected by the ban.
Additionally, this decision stipulated that the modification would only apply to non-American consumers who transfer money to or from bank accounts in US currency.
What transpired after the announcement?
Following the company’s announcement, Binance cryptocurrency wallets observed a high increase in outflows. Data from Arkham Intelligence, a crypto intelligence platform that offers insights on market behaviour, revealed that the withdrawals from Binance cryptocurrency wallets to other exchanges rose.
The representative stated, “Even after the millions of dollars’ worth of cryptocurrency poured out of Binance, we’re still massively net-positive on net deposits.”
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Additionally, as of (13:00 IST), the statement had not had any impact on the price of Binance’s exchange token, BNB, which is currently trading at $328.69, up 1.28 percent since the announcement.
Binance had even released a tool to assist customers in figuring out their tax liabilities for cryptocurrency transactions prior to this revelation.
According to your jurisdiction, you may now input your Binance transactions into our calculator and get a quick but thorough estimate of your tax responsibilities, according to a statement released by Binance on Monday.