Users On Binance.US Unable To Make BUSD Deposits/Withdrawals
It was mid of March 2023 when the global banking turmoil had begun, which originally originated in the United States. Even though March has come to an end, the turmoil is still there.
The situation is yet to be fully resolved and recovered and until that happens, more alarming news may continue coming out of the sector.
Surprisingly, the banking industry turmoil has started to impact the cryptocurrency industry and Binance.US has started showing signs of that.
Binance.US Halts Services for Users
It seems that a lot of uncertainty has been brought to life due to the ongoing banking turmoil. With the situation not coming under control, its contagion has started to spread to other sectors as well.
It is very alarming to see that the industry that had always claimed that it is going to bring an end to the traditional banking system, is also facing the contagion.
The uncertainty is constantly rising throughout the crypto industry, which is why Binance.US has been forced to make a difficult decision.
The US-based arm of Binance, Binance.US has recently announced that they have halted some of the services in light of the recent events.
Binance.US Discontinues Financing through OCBS
The officials at the Binance.US exchange have announced that from of March 31, 2023, they will have disabled the One Common Billing System, commonly referred to as the OCBS.
The particular billing system will be discontinued as of today and the users will not be able to make deposits or request withdrawals for Binance USD (BUSD). It is the native stablecoin that is used in the ecosystem offered by the Binance brand.
BUSD is Halted on Binance.US
The website of Binance.US has confirmed that multiple services and utilities involving BUSD have been halted on their platform.
These services include conversion of crypto options, selling, buying, withdrawals, and deposits involving the stablecoin.
In the communication made by the exchange officials with the users, they have revealed that they are facing an issue, which has forced them to halt the services.
The post states that they are investigating the problem and until it is investigated, they will continue to halt the services. The teams are yet to confirm when the issue will be resolved so as of now, it has been halted for an indefinite amount of time.
However, it has been announced that the suspension is temporary, which gives some hope that the service may be re-instead in the future.
What Happened Around that Time?
It has been highlighted by many users that the exchange made the concerning announcement after one particular announcement.
It was confirmed that Binance.US had halted some of the services on March 30, which allowed the users to deposit funds in the US dollar (USD).
It was also mentioned by the users that they could see on the Binance.US dashboard that services such as Google Pay and Apple Pay had been suspended temporarily.
The users were unable to make deposits using these options but the halt was temporary and the services were reinstated afterward.
It was later confirmed by Binance.US officials that they had to pause the services because of the banking transition. They were transitioning to a new banking partner as well as new providers for payment services.
They confirmed that the transition would be carried out in the upcoming weeks.
Impact on Binance.US
Turns out, the exchange is ready to jeopardize up to 5% of its total user base just because it doesn’t want to be impacted as the dollar price plunges.
The exchange has even halted the deposits carried out through the debit cards and the suspension was implemented on March 30 as well. Regarding all the updates and suspensions, Binance.US only has one announcement to make, which is that they are working on the issue. They want to resolve it as soon as possible.
